Who does FINRA Rule 3210 apply to?
The purpose of Rule 3210 is to govern accounts opened or established by advisors and brokers at firms other than the member firm where they are employed or registered. Accounts that financial advisors and brokers have with their employers are easily monitored.
What must be reported to FINRA?
FINRA Rule 4530 (Reporting Requirements) requires firms to report to FINRA specified events, such as a settlement against a firm in excess of $25,000, and quarterly statistical and summary information regarding written customer complaints.
What should be reported on U4?
Form U4 Items 14A and 14B – Criminal Disclosure. In Items 14A and 14B of the U4, applicants must disclose information about certain criminal charges and convictions, including disclosure of all felony convictions and certain misdemeanor convictions.
How do you get a 3210 letter?
Rule 3210 requires financial advisors to make a request and obtain consent from the FINRA member firm they work for to keep their accounts somewhere else. It also requires a disclosure letter to the outside firm when a securities industry professional opens an account.
What is FINRA statutory disqualification?
Statutory disqualification is a status that denotes that the individual may be subject to disqualification under Article III, Section 4 of the FINRA By-Laws and/or parallel provisions in the Securities Exchange Act of 1934. See also FINRA’s Statutory Disqualification Process website for SD Tier information.
How do I report a FINRA violation?
Before you file a complaint with FINRA, contact your firm. If you are not satisfied with your broker’s response, contact the firm’s branch manager or compliance department. If you lost money or there was an unauthorized trade made in your account, you should complain in writing.
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.
What is a 20 10 rule?
How Much Can You Safely Borrow? (The 20/10 Rule) 20: Never borrow more than 20% of yearly net income* 10: Monthly payments should be less than 10% of monthly net income*
What is finra statutory disqualification?
Is the FINRA supervisory system applicable to your own circumstances?
Firms may wish to consider whether the practices described below are applicable to their own circumstances and would enhance their supervisory systems and compliance programs. 1 FINRA reminds firms that they must continue to implement a reasonably designed supervisory system appropriately designed for their size and business model.
What do you need to know about FINRA Rule 17a-3?
Rule 17a-3 (a) (19) (ii) requires that a broker/dealer maintain a record of agreements pertaining to the relationship between each associated person and the broker/dealer, including a summary of each associated person’s compensation arrangements such as commission and concession schedules.
How long do you have to keep a FINRA record?
Record Retention: Three years, the first two years in an easily accessible place.
What does FINRA mean by limited supervision of trading activity?
Limited Supervision of Trading Activity for Excessive Trading or Churning – FINRA identified a variety of situations where supervisors failed to recognize when a pattern of transactions rendered the series of recommendations unsuitable.