While you were busy closing stoking the BBQ this weekend, FINRA announced Friday that it is filing a proposed rule change with the Securities and Exchange Commission (SEC ) to adopt FINRA Rule 3210 (Accounts At Other Broker-Dealers and Financial Institutions) in the consolidated FINRA rulebook and to delete NASD Rule 3050, Incorporated NYSE Rules 407 and 407A and Incorporated NYSE Rule Interpretations 407/01 and 407/02.
More rules, more oversight
At 174 pages, it is not exactly a beach read. But essentially, Rule 3210 dictates that sound supervisory practices require that a member firm monitor personal accounts opened or established outside of the firm by its associated persons. Proposed FINRA Rule 3210 combines and streamlines longstanding provisions of the NASD and NYSE rules that address this area and would, in combination with FINRA’s new FINRA Rule 3110(d) governing securities transactions review and investigation, help facilitate effective oversight of the specific trading activities of people associated with member firms. Click here to read it for yourself.
The goal, of course is to provide a means for members and/or associates to weigh the impact on themselves or their clients of such transactions handled outside their firms — if any. The Ruling provides a laundry list of actions, including who to inform, how to do it (in writing, of course), compliance requirements, and how and when to do so.
FINRA Rule 3210 and you
What does FINRA Rule 3210 mean for you?
More documents, more records. More stuff to share when FINRA comes calling. All of which simply underscores the importance of records retention and records retrieval. And the latter is as important as the former. Are you prepared to add this new layer of documentation, and how will you access the records you need and deliver it all on demand to the examiners in a timely fashion? Consider launching a pre-emptive strike, connecting with an independent regulatory archival and compliance solutions specialist? Like Patrina. Ask about our comprehensive regulatory archival and compliance solutions specifically designed for Broker/Dealers, RIAs, and FCMs. Or…you could wait for that FINRA call…
Let’s talk (212- 233-1155).