What is a direct participation program FINRA?
(4) Direct participation program (program) — a program which provides for flow-through tax consequences regardless of the structure of the legal entity or vehicle for distribution including, but not limited to, oil and gas programs, real estate programs, agricultural programs, cattle programs, condominium securities.
What is FINRA’s definition of fair dealing?
Fair dealing with customers requires that charges be reasonable and disclosed up front in a manner that will allow investors to make informed investment decisions. Furthermore, under FINRA Rule 2122, any miscellaneous charges must be reasonable and related to the services performed.
What is the dollar value that any gift from or to a member or person associated with a member may not exceed in one year?
Let’s recap the main rule briefly: FINRA’s Rule 3220 prohibits any member or person associated with a member, directly or indirectly, from giving anything of value in excess of $100 per year to any person where such payment is in relation to the business of the recipient’s employer.
Why didn’t FINRA eliminate its suitability rule?
FINRA has not eliminated its suitability rule because there will be recommendations that will not be subject to Reg BI but that would still warrant suitability protections.
What is the FINRA Rule 2330?
Rule 2330 requires a registered principal to review and determine whether to approve a customer’s application for a deferred variable annuity before sending the application to the issuing insurance company.
What are FINRA rules?
FINRA’s rules and guidance strive to protect investors and ensure the integrity of today’s rapidly evolving market. FINRA’s rules and guidance strive to protect investors and ensure the integrity of today’s rapidly evolving market. FINRA is here to help keep investors and their investments safe.
What is the rules of fair?
Breaking Down Rules of Fair Practice Put succinctly, the Rules of Fair Practice require broker-dealers to treat customers fairly and equitably. In a broad view, the Rules of Fair Practice cover the fair dealing, duty of loyalty, obligation of disclosure and other duties broker and dealers perform for their customers.
Why can’t government employees receive gifts?
As a general rule, a federal employee cannot accept your gift if you or your company seeks official action by the employee’s agency, does business with the agency, seeks to do business with the agency, or if you or your company would be otherwise affected by the employee’s performance of his or her duties.
When can a government employee accept a gift?
Employees may accept awards with an aggregate value of $200 or less given as a bona fide award for meritorious public service by a person who does not have interests affected by the employee’s performance or nonperformance of official duties.
What is the FINRA suitability rule?
FINRA Rule 2111 requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer.
What is FINRA Rule 4512?
FINRA Rule 4512 (Customer Account Information) requires members to make reasonable efforts to obtain the name of and contact information for a trusted contact person upon the opening of a non-institutional customer’s account or when updating account information for a non-institutional account.
Are FINRA rules law?
Although it has regulatory powers, FINRA is not part of the government. It is a not-for-profit entity and the largest self-regulatory organization (SRO) in the securities industry within the U.S. An SRO is a membership-based organization that creates and enforces rules for members based on federal laws.
What are the requirements of rule 2330?
.05 Gathering of Information Regarding Customer Exchanges. Rule 2330 requires that the member or person associated with a member consider whether the customer has had another deferred variable annuity exchange within the preceding 36 months.
How does rule 2330 apply to deferred variable annuity?
Under Rule 2330, a member that is permitted to maintain customer funds under SEA Rules 15c3-1 and 15c3-3 may, prior to the member’s principal approval of the deferred variable annuity, deposit and maintain customer funds for a deferred variable annuity in an account that meets the requirements of SEA Rule 15c3-3.
What is rule 2330 about sharing of information?
.07 Sharing of Information. Rule 2330 does not prohibit using the information required for principal review and approval in the issuance process, provided that the broker-dealer and the insurance company have agreed that the insurance company will not issue the contract prior to principal approval by the broker-dealer.
What are the requirements of rule’s 3110?
In addition to the general supervisory and recordkeeping requirements of Rule s 3110, 3120, 3130, 3150, and 4510 Series, a member must establish and maintain specific written supervisory procedures reasonably designed to achieve compliance with the standards set forth in this Rule.