Exam Alert: Proposed FINRA rule will clarify firms’ supervisory responsibilities for outsourced activities

On March 29, 2011, FINRA requested comment on proposed FINRA Rule 3190. The proposed rule makes it clear that when a firm outsources a function or Continue reading

On March 29, 2011, FINRA requested comment on proposed FINRA Rule 3190.  The proposed rule makes it clear that when a firm outsources a function or activity to a third party, the firm is still responsible for complying with applicable securities law and FINRA and MSRB rules.  This responsibility cannot be delegated to another party.  Firms will also be required to have supervisory procedures in place to ensure compliance with the rule.

http://www.finra.org/Industry/Regulation/Notices/2011/P123399

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