On Jan. 8, 2018, FINRA issued regulatory and examination priorities letter for 2018. Resource for firms to enhance compliance, supervisory, risk management programs. Focus for 2018 on fraud, high-risk firms and brokers, operational and financial risks. Financial risk included technology governance and cybersecurity, market regulation. Sales practice if, recommend complex products to unsophisticated/at-risk investors. Protection…
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U.K. FCA Illegal Lending
On November 29, FCA issued report on illegal customer money lending. Covers lending to people without regard to rules and requirements of regulation. It can take different forms and affect a range of different consumer groups in UK. FCA found unauthorized lending had existed in UK communities for generations. Happens across the UK and is…
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U.S. FINRA Market Making Payments
On November 28, FINRA consulted on rules for market making payments. Retrospective review of rule on payment for market making to assess if effective. Outlined retrospective rule review process, and sought responses from questions. Restriction from Rule Review working of FINRA Rule 5250, which restricted payment for market making. Ban firm or associate accepting payment…
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U.S. DoL Delay of Fiduciary Rule
On November 24, DoL extended fiduciary rule exemptions by 18 months. Provided 18-month delay of applicability date of three exemption provisions in rule. Followed August 31, 2017 extension proposal when rule wasn't delayed. After a review of comments received, DoL adopted proposed delay without change. Exemptions Delay Extend transition period, delay applicability date from January…
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U.S. OFAC Sanctions Rules for Iran
On 20 November 2017, Treasury OFAC designated large-scale IRGC-QF counterfeit ring. Network of individuals and entities to help Iran's Revolutionary Guard Corps-Qods. Provided IRGC-QF) with counterfeit currency, in support of destabilizing activities. Used deception to circumvent EU export control restrictions, procured equipment. Printed counterfeit Yemeni bank notes of hundreds millions of dollars for IRGC-QF. IRGC-QF…
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U.S. MSRB Streamline Series 52 Exam
On 8 November, MSRB revised series 52 into a specialized knowledge exam. In advance of FINRA 1 October 2018 issue of Securities Industry Essentials (SIE) exam. Aims of Exam MSRB worked with FINRA in developing SIE exams, to streamline duplicative testing. General knowledge test is traditionally covered in several representative-level exams. MSRB supported goal to…
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