Articles Posted in The FINRA Rule Watch - FINRA Rules of Importance to Investors

SEC Order Approving FINRA Rule Change Relative to How Member Firms are Required to Calculate the Value of Unlisted Real Estate Investment Trusts and Direct-Participation Programs: The Sec has approved FINRA’s plan to overhaul how member firms calculate the value of unlised real estate investment trusts (“REITs”) and direct-participation programs (“DPPs”). Under the new rules…

Proposed Rule Change to Amend the Discovery Guide Used in Customer Arbitration Proceedings to Provide Guidance on Electronic Discovery Issues and Product Cases and to Clarify the Existing Provision Relating to Affirmations: Financial Industry Regulatory Authority, Inc. (“FINRA”) has recently filed with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to…

Adoption of Final Rule for Broker-Dealers Engaging in a Retail Forex Business The Securities and Exchange Commission (Commission) recently announced the adoption of a final rule (Rule 15b12-1) to permit a registered broker-dealer to engage in a retail forex business, provided that the broker-dealer complies with the Securities Exchange Act of 1934, the rules and…

South Florida – FINRA Negligent Supervision FINRA Arbitration Attorney: Proposed Rule Change to Adopt the Consolidated FINRA Supervision Rules: Financial Industry Regulatory Authority, Inc. (“FINRA”) recently filed with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to adopt the consolidated FINRA supervision rules. Specifically, the proposed rule change would (1) adopt…

The Financial Industry Regulatory Authority, Inc. (“FINRA”) recently filed with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend the By-Laws of FINRA Dispute Resolution, Inc. (By-Laws) to clarify that services provided by mediators, when acting in such capacity and not representing parties in mediation, should not cause the individuals…

May, 2012: FINRA Proposed Rule Change Relating to the Handling of Stop and Stop Limit Orders http://www.finra.org/Industry/Regulation/RuleFilings/2012/index.htm Many investors use Stop or Stop Limit Orders as part of their investment strategy. Therefore, it is important to stay abreast of proposed changes that may effect that strategy. Consequently, it is important that you read the proposed…

FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq. May, 2012: Proposed Rule Change to Adopt FINRA Rule 5270 (Front Running of Block Transactions) in Consolidated FINRA Rule Book. There are many variations of front running. Generally, front running is a practice whereby a securities trader takes a position to capitalize on advance knowledge of…

The purpose of this post is to provide the reader with information relative to recently proposed or adopted rule changes issued by the Financial Industry Regulatory Authority (FINRA), in addition to Guidance Releases relating to the interruptation of these rules. This information is being provided for informational purposes only. Thus, it should not be relied…

Broker/Dealer – Private Placements: As a result of the recent private placement debacle that seems to be discussed daily in the financial press, FINRA has proposed an amendment to its rules, which it believes will enhance investor protection. While the amendment is not the end-all to the problems that have recently been exposed in this…

SEC Approves Consolidated FINRA Rules Governing Know-Your-Customer: Effective October 7, 2011, new consolidated FINRA rules governing your broker/dealer’s and your account executive’s know-your-customer and suitability obligations become effective for the consolidated FINRA rulebook. The new rules are based in part on and replace provisions in the NASD and NYSE rules. These rules are of critical…