Broker-Dealer Regulation
SEC Staff Extends Relief Allowing Broker-Dealers to Rely on Investment Advisers to Perform Customer Identification and Verification
On January 10, the SEC’s Division of Trading and Markets issued a letter to the Securities Industry and Financial Markets Association (SIFMA) that extends no-action relief allowing broker-dealers to fully rely on SEC registered investment advisers to perform some or all of their Customer Identification Program (CIP) obligations. The SEC extended the no-action relief for two years, or until such time as investment advisers become subject to an anti-money laundering rule.
FINRA Amends NYSE Rule 342.13: Eliminates Cut-Off Date for Recognition of Series 24
Today, FINRA issued Regulatory Notice 08-02, which informs member firms that FINRA has amended NYSE Rule 342.13 to eliminate the requirement that the General Securities Principal Examination (Series 24) be passed after July 1, 2001 in order to be recognized as an acceptable alternative to the General Securities Sales Supervisor Qualification Examination (Series 9/10). The amendment became effective on November 28, 2007.
FINRA Issues Guidance Regarding Review and Supervision of Electronic Communications
PDF version Last week, the Financial Industry Regulatory Authority (FINRA) issued guidance regarding the review and supervision of electronic communications. The guidance sets forth principles for member firms to consider when developing supervisory systems and procedures for electronic communications that are reasonably designed to achieve compliance with applicable federal securities laws and self-regulatory organization (SRO) rules. FINRA’s guidance is in substantially the same form set forth in a proposal issued in June 2007.