Compliance Newsflash – May 3, 2017

May 3, 2017

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’s Newest One-Two Punch
On April 26, 2017, JD Supra.com announced that the SEC approved: (1) new FINRA Rule 2165 (Financial Exploitation of Specified Adults[1]) permitting members to place temporary holds on certain customer accounts where there is a reasonable belief of financial exploitation; and (2) amendment of FINRA Rule 4512 (Customer Account Information) requiring members to make reasonable efforts in obtaining the name of, and contact information for, a “trusted contact person” related to accounts held by senior and/or vulnerable investors. According to FINRA, the new “safe-harbor” was designed to “provide members with a way under FINRA rules to respond to situations in which they have a reasonable basis to believe that financial exploitation has occurred, is occurring, has been attempted, or will be attempted.”
To read the full article, click here.

Senate confirms Wall Street attorney Jay Clayton to head SEC
On May 2, 2017, Business Insider announced that the Senate confirmed Jay Clayton, the Wall Street attorney chosen by President Donald Trump to lead the Securities and Exchange Commission. The vote was 61-37 to give Clayton the job of running the independent agency that oversees Wall Street and the financial markets. Ten Democrats joined 51 Republicans in backing the nominee.
For more information, click here.