Series 82

Exam Alert: SEC approves revised FINRA telemarketing rule

The SEC has approved a new consolidated FINRA telemarketing rule. The rule will become effective July 29, 2012. The new rule contains provisions that are similar to FTC standards. Continue reading

The SEC has approved a new consolidated FINRA telemarketing rule. The rule will become effective July 29, 2012. The new rule contains provisions that are similar to FTC standards. Changes to the prior rule include:

-Do-not-call lists: Under the old rule, do-not-call requests were required to be honored for five years. Under the new rule, do-not-call requests must be honored indefinitely.

-Unencrypted consumer account numbers: Firms may not buy or sell unencrypted consumer account numbers for telemarketing purposes.

-Submission of billing information: Firms must obtain the informed consent of a customer in order to charge them for a telemarketing transaction. The firm must also identify the account to be charged. If the transaction involves “pre-acquired account information and a free-to-pay conversion feature,” then the firm must make an audio recording of the telemarketing transaction.

-Abandoned calls: Firms may not abandon outbound calls, unless they meet the following safe harbor provisions:

1. The firm employs technology that drops no more than 3% of answered calls over a 30-day period (or the duration of a single calling campaign that lasts less than 30 days).

2. The firm lets the phone ring for 15 seconds or 4 rings before disconnecting the unanswered call.

3. If there is no associated person available to speak with the person answering the call within 2 seconds of the person’s completed greeting, the firm plays a recording giving the name and number of the firm.

4. The firm retains records of compliance with the safe harbor.

-Prerecorded messages: Except as noted above (under “abandoned calls”), firms may not make outbound calls that deliver prerecorded messages unless they have the written consent of the person receiving the call. The call must include an opt-out mechanism, as well.

-Credit card laundering: Credit card laundering is prohibited. Credit card laundering is “the practice of depositing into the credit card system a sales draft that is not the result of a credit card transaction between the cardholder and the firm.” Soliciting someone else to engage in credit card laundering is prohibited as well. Obtaining unauthorized access to the credit card system is also prohibited

These rules also apply to associated persons of a firm.

Source: FINRA Regulatory Notice 12-17

This exam alert applies to the Series 62, Series 6, Series 26, Series 24, Series 7, and Series 82.

Exam Alert: FINRA raises exam fees

Effective April 2, 2012, FINRA will increase the fees associated with several of its qualification examinations. The fee increases range from $5 to $25. In addition, FINRA will impose a $15 service charge for examinations taken outside of the territorial limits of the United States. Continue reading

Source: FINRA Regulatory Notice 12-16

This alert applies to the Series 6, Series 7, Series 24, Series 26, Series 55, Series 62, Series 79, and Series 82.

Exam Alert: SEC approves changes to FINRA’s Code of Procedure

The SEC has approved amendments to FINRA’s Code of Procedure that modify the specifics of how various proceedings are conducted. These changes will be effective on March 30, 2012. The changes are described as “procedural in nature,” and are generally minor changes, though they affect several different rules. Continue reading

A breakdown of the changes is as follows:

-Service of Complaint: A complaint may be served to the counsel representing a party, instead of to the party directly, if the counsel consents to receive it.

-Filing Papers with Adjudicator: Email may be used to file documents with an adjudicator. Footnotes should be single-spaced. The number of copies to be filed has decreased from three to one (unless otherwise ordered).

-Motion to Withdraw by Attorney: If an attorney representing one of the parties seeks to withdraw, he or she must provide contact information for the party no longer being represented.

-Subjects Discussed at Pre-Hearing Conference: During a pre-hearing conference, a hearing office may act upon relevant portions of transcripts from investigative testimony.

-Fees for Copying Costs During Discovery: FINRA staff determine the rates for copying materials.

-Submission of Evidence: Documents submitted prior to a hearing are not automatically entered into record for that hearing (to minimize duplication).

-Hearing Panel and NAC Decisions: Decisions must be independently stated only if they are not already on record.

-Review Proceedings: The Review Subcommittee may review decisions.

-Oral Argument on Appeal: If a respondent appeals a decision and requests an oral argument, but then abandons the request or is unreasonably unavailable, the reviewing committee/subcommittee may cancel the oral argument.

-Failure to Participate in a Disciplinary Proceeding: The reviewing committee/subcommittee must remand a disciplinary proceeding if the appealing party fails to participate and shows good cause.

-Filing Papers in Eligibility Proceedings: Consent from all parties is no longer required for a hearing panel to extend filing deadlines for an eligibility proceeding.

-Procedural Motions in Eligibility or Expedited Proceedings: The National Adjudicatory Council (NAC) may decide any procedural motion made for an eligibility or expedited proceeding.

Source: FINRA Regulatory Notice 12-12

This alert applies to the Series 62, Series 26, Series 24, Series 7, and Series 82.

Exam Alert: SEC requests that broker-dealers provide FINRA with SAR information

Member firms must make suspicious activity reports (SARs) and supporting documentation available to FINRA, as well as any information that would reveal the existence of an SAR or any decision not to file an SAR. Continue reading

On January 26, 2012, the SEC issued a letter that authorized FINRA to request suspicious activity reports (SARs) and supporting documentation from member firms when FINRA conducts examinations, investigations, or risk assessment for its examination program. Member firms must make these documents available to FINRA, as well as any information that would reveal the existence of an SAR or any decision not to file an SAR.

Source: FINRA Regulatory Notice 12-08

This alert applies to the Series 79, Series 62, Series 6, Series 26, Series 24, Series 99, Series 7, and Series 82

Exam Alert: US Labor Dept requires disclosures from plan service providers

The US Labor Department has finalized a rule under ERISA that will require service providers for pension plans to disclose information about their fees to the employers sponsoring the plans. The rule will be effective July 1, 2012. Continue reading

The rule will require disclosure of the service provider’s compensation structure (including both “direct” compensation from the plan sponsor and “indirect” compensation from other sources), as well as potential conflicts of interest. The rule is limited in scope to ERISA-covered defined benefit and defined contribution pension plans. The rule applies to service providers who expect to receive at least $1,000 in compensation for specified plan-related services, including fiduciary, advisory, brokerage, and recordkeeping services, or other financial services for which they receive indirect compensation.

Sources:

U.S. Treasury, Labor Departments Act to Enhance Retirement Security for an America Built to Last

Fact Sheet – Final Regulation Relating to Service Provider Disclosures Under Section 408(b)(2)

This alert applies to the Series 62, Series 6, Series 26, Series 24, Series 7, Series 65, Series 66, and Series 82 – these exams address ERISA considerations.

Solomon Exam Prep Introduces Series 82 Online Exam Simulator

Solomon Exam Prep is pleased to announce our industry-leading online exam simulator for the Series 82!

If you have to take the FINRA Series 82 Private Securities Offerings exam, and want as much practice as possible before you do, then the Solomon Exam Prep online exam simulator is right for you. Continue reading

Solomon Exam Prep is pleased to announce our industry-leading online exam simulator for the Series 82!

If you have to take the FINRA Series 82 Private Securities Offerings exam, and want as much practice as possible before you do, then the Solomon Exam Prep online exam simulator is right for you.

The Exam Simulator features an unlimited number of randomly-generated section quizzes as well as full-length exams, both in timed and untimed modes. New questions are added regularly to the Solomon Exam Prep Series 82 question database, so that you get the best experience possible in this fast-changing industry.

Studies have shown that self-testing is a powerful tool for learning. It just goes to show that the old saying is true: practice really does make perfect.

Begin practicing for your Series 82 exam with the Solomon Exam Prep Series 82 Online Exam Simulator today!

Exam Alert: FINRA recommends heightened supervision for complex products

On January 17, 2012, FINRA highlighted the need for firms to have adequate supervisory and compliance programs in place in order for registered representatives to recommend complex products. FINRA identified several characteristics that may cause a product to be considered “complex,” such as embedded derivatives or contingencies. The notice states that agents should determine suitability, consider the customer’s financial sophistication, discuss the products with the customer, and consider alternative investments that could meet the customer’s goals. The firm should also review the performance of the products and train the agents about the products. Continue reading

Source: FINRA Regulatory Notice 12-03

This alert applies to the Series 6, Series 7, Series 24, Series 26, Series 55, Series 62, Series 79, Series 82, Series 99, Series 63, Series 65, and Series 66.

Exam Alert: Disclosures required by the Department of Labor do not need to be filed with FINRA

On October 20, 2010, the U.S. Department of Labor (DOL) adopted a rule that requires retirement plan administrators to show participants in participant-directed individual account plans (e.g., 401(k) plans) information on alternative investment options. On January 13, 2012, FINRA stated that communications that contain only the information required by the DOL rule do not need to be filed with FINRA. Note that communications that have additional information not required by the DOL rule must be filed with FINRA. Continue reading

Source: FINRA Regulatory Notice 12-02

This alert applies to the Series 62, Series 6, Series 26, Series 24, Series 7, and Series 82.

Exam Alert: SEC staff provides compliance suggestions for IAs using social media

On January 4, 2012, the SEC staff provided suggestions for investment advisers using social media to help them comply with communication and recordkeeping rules. Of particular note, the SEC staff stated that the client use of the “like” button could count as a testimonial under the Investment Advisers Act. Investment adviser advertisements may not include testimonials. Note that written communications addressed to more than one person are considered advertisements.

Source: National Examination Risk Alert: Investment Adviser Use of Social Media

This alert applies to the Series 65, Series 66, Series 24, Series 55, Series 62, and Series 82.

Exam Alert: FINRA modifies rules to protect certain documents from discovery

The SEC has approved a change to FINRA Rule 9251, effective December 2, 2011. This change to the rule explicitly protects from discovery documents that federal law prohibits FINRA from disclosing. Previously, FINRA’s Enforcement and Market Regulation Departments needed to seek a “good cause” determination to withhold the documents – this is no longer the case.

Source: FINRA Regulatory Notice 11-50

This alert applies to the Series 24, the Series 62, and the Series 82.