Search Results: Broker-Dealers

Time’s Up! Broker-Dealers Must Comply with the Customer Protection Rule When Borrowing Customer Securities

On April 16, 2021, the staff of the SEC Division of Trading and Markets reminded broker-dealers borrowing fully paid and excess margin securities from their customers (FPL programs) that they are obligated to comply with Exchange Act Rule 15c3-3 (Customer Protection Rule), and in particular, paragraph (b)(3).  This reminder was…

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FDIC Finalizes Amended Brokered Deposits Rule

On December 15, the FDIC approved a final rule to revise and modernize its regulations relating to brokered deposits. The final rule establishes a new framework for analyzing whether deposits made through deposit arrangements qualify as brokered deposits, including those between insured depository institutions (IDIs) and third parties, such as financial technology companies. Specifically,…

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Rule Change Extends the Deadline for Passing the Examination for Certain Categories of Broker Professionals

On August 28, FINRA filed with the SEC a notice of proposed rule change that would extend the 120-day period that certain individuals can function as a principal or Operations Professional without having successfully passed an appropriate qualification examination through December 31, 2020. Earlier this year, in response to COVID-19, FINRA provided…

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SEC’s OCIE Issues Risk Alert Regarding Select COVID-19 Compliance Risks and Considerations for Broker-Dealers and Investment Advisers

On August 12, the SEC’s OCIE issued a risk alert regarding its observations pertaining to COVID-19-related issues, risks and practices, including market volatility and higher risks of misconduct, relevant to SEC-registered investment advisers and broker-dealers (collectively, Firms). OCIE’s observations and recommendations fall broadly into the following six categories: (1) protection of investors’…

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U.S. SEC Grants Muni Advisors a Temporary, Limited Exemption from Broker-Dealer Registration

On June 16, 2020, the U.S. Securities and Exchange Commission (SEC) granted registered municipal advisors (MAs) a temporary, limited exemption (Exemption) from broker-dealer registration to the extent that they solicit banks and other “Qualified Providers” in “Direct Placements” of securities and receive transaction-based compensation. The Exemption, which is intended to…

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SEC Grants Muni Advisors a Temporary Exemption from Broker-Dealer Registration

On June 16, the SEC granted registered municipal advisers (MAs) a temporary, limited exemption (Exemption) from broker-dealer registration for certain expanded activities. The Exemption permits registered MAs to directly solicit “Qualified Providers” (banks, wholly-owned subsidiaries of banks that are engaged in commercial lending and financing activities and federally- or state-chartered credit unions)…

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U.S. SEC Chairman Confirms June 30 Deadline and Areas of Focus for Regulation Best Interest and Form CRS

In a public statement issued on June 15, 2020, U.S. Securities and Exchange Commission (SEC) Chairman Clayton confirmed the June 30, 2020, deadlines for compliance with Regulation Best Interest (Reg. BI) and the Form CRS requirements, echoing his statements from April that the implementation of Reg. BI and Form CRS…

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