Compliance Newsflash – January 10, 2018

January 12, 2018

DLA is committed to keeping our clients and friends updated on relevant news and topics in the industry by distributing a weekly Compliance Newsflash. We hope this provides you with helpful and insightful information for you and your firm! Join our mailing list by clicking here: DLA Newsflash Registration.

FINRA Releases 2018 Regulatory and Exam Priorities
On January 8, 2018, the Financial Industry Regulatory Authority (FINRA) released its 2018 Regulatory and Examination Priorities Letter, highlighting topics that FINRA will focus on in the coming year, including new and ongoing areas of focus. The Priorities Letter – alongside FINRA’s 2017 Examination Findings Report – serves as a resource for broker-dealers to enhance their compliance, supervisory and risk management programs and to prepare for their FINRA examination. Among the topics identified in the letter as areas of focus in 2018 are fraud, high-risk firms and brokers, operational and financial risks – including technology governance and cybersecurity – and market regulation.
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Commercial Sales Rules Threaten to Redefine Fiduciary Advice
On January 6, 2018, the Securities & Exchange Commission Chairman Jay Clayton said that a uniform standard of conduct for broker-dealers and investment advisers providing advice to retail clients is on the commission’s front burner. Some sources say a proposed rule could come as early as next month. In July, the chairman set out his views on the principles he believes should guide the commission. One section of his remarks is devoted to “Investment Advice and Disclosures to Investors” and another to “Resources to Educate Investors.” Here, the chairman speaks eloquently on disclosure in “Standards of conduct that investment professionals must follow in providing advice to Main Street investors.”
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