Tag: Rule 2310

Exam Alert: FINRA to implement new electronic filing system for public offerings

Firms that participate in initial public offerings must submit certain information about the offered security to FINRA, including the registration statement/offering circular and the underwriting agreement. FINRA will be shifting from the current system for filing this information to a new system in the near future:
-The last day firms may file using the old system (COBRADesk) is May 31, 2012.
-The firms may first file under the new system (Public Offering System) on June 4, 2012.
-Firms will no longer have access to the old system for data retrieval after June 20, 2012. Continue reading

Firms that participate in initial public offerings must submit certain information about the offered security to FINRA, including the registration statement/offering circular and the underwriting agreement. FINRA will be shifting from the current system for filing this information to a new system in the near future:
-The last day firms may file using the old system (COBRADesk) is May 31, 2012.
-The firms may first file under the new system (Public Offering System) on June 4, 2012.
-Firms will no longer have access to the old system for data retrieval after June 20, 2012.

FINRA will generally not be migrating data from the old system to the new one.  However, FINRA will transfer over base prospectuses submitted for shelf offerings.

The new system includes new features.  FINRA will be releasing further information on the new system on its website.

Emerging growth companies that choose to file their IPOs confidentially with the SEC must still file information with FINRA (all filings with FINRA under the Corporate Financing Rules are nonpublic).

Firms remain responsible for the accuracy of their filings even if the filing is made by a third party.

Source: FINRA Regulatory Notice 12-22

This exam alert applies to the Series 62, Series 79, Series 24, Series 7, and Series 82.

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

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.

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.