Compliance Newsflash – April 17, 2019

April 17, 2019

FINRA Clarifies How BDs Should Handle Departing Rep Information

On April 15, 2019, ThinkAdvisor reported  that broker-dealers must “promptly and clearly” communicate a registered rep’s departure to clients – including the departing rep’s contact information – and provide “timely and complete” answers to clients’ queries about the departing rep, the Financial Industry Regulatory Authority states in a new Regulatory Notice.

However, FINRA’s notice is vague when it comes to whether broker-dealers must tell clients a parting rep was fired, a lawyers’ group says.

For more information, click here.

Investment Adviser and Broker-Dealer Compliance Issues Related to Regulation S-P – Privacy Notices and Safeguard Policies 

On April 16, 2019, the Securities and Exchange Commission announced that the Office of Compliance Inspections and Examinations (“OCIE”)* is providing a list of compliance issues related to Regulation S-P, the primary SEC rule regarding privacy notices and safeguard policies of investment advisers and broker-dealers. These issues were identified in recent examinations of SEC-registered investment advisers (“advisers”) and brokers and dealers (“broker-dealers,” and together with advisers, “registrants” or “firms”). The information in this Risk Alert is intended to assist advisers and broker-dealers in providing compliant privacy and opt-out notices, and in adopting and implementing effective policies and procedures for safeguarding customer records and information, under Regulation S-P.

For more information, click here.