Compliance

POGO Report Shows Possible Influence Of Wall Street Executives On SEC Policy And Enforcement Decision Making

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A report published by the Project on Government Oversight (POGO) just a few weeks after Mary Jo White was nominated to head the SEC shows that there was a revolving door between Wall Street executives and SEC staff.   A case study on money market fund lobbying shows how SEC staff that are now working in the private sector could have influenced the SEC’s ability to push through reforms in policy and enforcement over the past ten years.

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FINRA Puts SRO Priority On Back Burner, Noting Little Momentum In Congress In Support Of The Measure

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FINRA is putting its plans on hold to become the SRO to oversee investment advisors.   Noting that there seems to be little momentum in Congress to create an SRO to help the SEC examine more advisors on an annual basis, FINRA chief executive Richard Ketchum insists he is not giving up.

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FINRA Pulls Proposal To Eliminate 5% Rule As A Result Of Commentary

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Two years ago FINRA initiated a proposal that would update guidance regarding the 5% threshold for markups and markdowns. Commentary warned FINRA not to do away with the rule.   Now, the regulatory organization has backtracked on its proposal to do exactly that. As of last Thursday, FINRA’s website has an updated proposal that keeps the 5% threshold in place.

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FINRA Creates Interim Form For Crowdfunding Portals And Will Use Information Gathered To Formulate Rules

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In a step closer to formluating crowdfunding rules, FINRA has created an interim form for prospective crowdfunding portals.   Information businesses voluntarily submit on the form will be used to design rules specific to the portals.   The information will guide development of the rules for both FINRA and the SEC.

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FINRA Opens Comment Period On Compensation Disclosure Rule That Would Include Disclosing Signing Bonuses To Clients

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FINRA has opened a comment period on its proposed rule mandating disclosure of broker compensation including bonuses.   Member firms will be required to disclose financial incentives they offer recruits before they join the firm. The disclosure must be made before the recruit’s client accounts are transferred.   The rule is titled Regulatory Notice 13-02 and comments must be received by March 5.

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