On April 18, 2018, the SEC introduced new Regulation Best Interest for broker-dealers and their associated persons when dealing with retail customers. This alert provides background of broker-dealer regulation, an overview of Regulation Best Interest, and our take on what
IM Insights
Providing securities and derivatives regulatory updates for investment management industry participants
IM Insights, published by Morrison & Foerster LLP, focuses on regulatory and compliance issues affecting financial services and investment management sectors. The blog covers topics such as SEC regulations, FINRA guidance, fund of funds rules, valuation practices for registered investment companies, and implementation of regulations like Regulation Best Interest and Form CRS. It provides updates on enforcement trends, compliance best practices, and legal developments relevant to broker-dealers, investment advisers, and fund managers. The content aims to assist industry participants in navigating complex regulatory frameworks and addressing operational risks associated with securities laws and investment company regulations.
Latest from IM Insights - Page 5
FINRA Proposes Amendments to Quantitative Suitability Rules
On April 20, 2018, FINRA issued proposed amendments to Rule 2111’s “quantitative suitability” provisions. According to FINRA, the proposal is designed to more effectively counter the problem of “churning,” or excessive trading in customer accounts.
As discussed below, the proposal…
Broker-Dealer Standard of Care: The SEC Enters the Fray
By Kelley Howes
At an open meeting held earlier today, the SEC voted 4-1 to propose a package of rules, forms, and guidance designed to define a new “best interest” standard of care for broker-dealers dealing with retail investors. The proposal would also…
OCIE Risk Alert Identifies Key Advisory Fee and Expense Compliance Issues
The SEC’s Office of Compliance Inspections and Examinations this week provided investment advisers with a summary of frequent compliance issues related to advisory fees and expenses that the staff is seeing in their examinations of registered investment advisers.
The Risk…
FINRA updates its Frequently Asked Questions on new mark-up and mark-down disclosure rules for transactions in fixed income securities
On March 19, 2018, FINRA updated its guidance on its recent amendments to Rule 2232. The new requirements, which are currently scheduled to take effect on May 14, 2018, apply to transactions with retail customers (not institutional accounts, as defined…
First State Charges Broker-Dealer in Connection with Violations of DOL Fiduciary Rule
On February 15, 2018, the Enforcement Section of the Massachusetts Securities Division (the “Division”) of the Office of the Secretary of the Commonwealth charged a registered broker-dealer (the “Broker-Dealer”) that operated in Massachusetts with violating its own internal policies designed…
MiFID II & PRIIPs – The Early Days
Friday, February 23, 2018
Registration:
8:30 a.m. – 9:00 a.m.
Workshop:
9:00 a.m. – 10:30 a.m.
Risk.net Workshop
One Moorgate Place
Chartered Accountants Hall
1 Moorgate Pl
London, United Kingdom
EC2R 6EA
The first few days of 2018 saw the implementation…
Senate Considers Legislation That Would Loosen BDC Restrictions
On January 18, 2018, the Small Business Credit Availability Act was introduced in the U.S. Senate and referred to the Committee on Banking, Housing, and Urban Affairs. The Act would amend the Investment Company Act of 1940 to change certain…
OCIE Announces Its 2018 Examination Priorities
By Kelley Howes
The SEC’s Office of Compliance Inspections and Examinations (OCIE) has published its 2018 examination priorities. Not surprisingly, it will continue to focus on the protection of retail investors and ensuring that registrants are appropriately disclosing or resolving conflicts of interest. In addition,…
2018: Business As (Un)usual – European Financial & Regulatory Developments into 2018
2017 in the UK and the rest of Europe seems to have been primarily a year devoted to implementation – both of political decisions already made and of legislation that had already been enacted. On the political front, Brexit continued…