SR-FINRA-2018-005 Proposed Rule Change to Revise the Research Analyst (Series 86 and 87) Examinations
FINRA is filing with the SEC revisions to the content outline and selection specifications for the Research Analyst (Series 86 and 87) examinations as part of the restructuring of the representative-level examination program. The proposed revisions also update the material to reflect changes to the laws, rules and regulations covered by the examinations and to incorporate the functions and associated tasks currently performed by a Research Analyst. In addition, FINRA is proposing to make changes to the format of the content outline. FINRA is not proposing any textual changes to the By-Laws, Schedules to the By-Laws or Rules of FINRA.
SR-FINRA-2018-006 Proposed Rule Change to Revise the Operations Professional (Series 99) Examination
FINRA is filing with the SEC revisions to the content outline and selection specifications for the Operations Professional (Series 99) examination as part of the restructuring of the representative-level examination program. The proposed revisions also update the material to reflect changes to the laws, rules and regulations covered by the examination and to incorporate the functions and associated tasks currently performed by an Operations Professional. In addition, FINRA is proposing to make changes to the format of the content outline. FINRA is not proposing any textual changes to the By-Laws, Schedules to the By-Laws or Rules of FINRA.
SR-FINRA-2018-002 Proposed Rule Change Relating to the New Securities Industry Essentials (SIE) Examination
The SEC recently approved a proposed rule change to restructure the FINRA representative-level qualification examination program. The rule change, which will become effective on October 1, 2018, restructures the examination program into a more efficient format whereby all new representative-level applicants will be required to take a general knowledge examination (the SIE) and a tailored, specialized knowledge examination (a revised representative-level qualification examination) for their particular registered role. Individuals are not required to be associated with a FINRA member to be eligible to take the SIE examination. However, passing the SIE examination alone will not qualify an individual for registration with FINRA. To be eligible for registration, an individual must also be associated with a firm, pass an appropriate qualification examination for representative or principal and satisfy the other requirements relating to the registration process.
MSRB Regulatory Notice 2018-01 MSRB Reminds Dealers of Existing Guidance on Filtering of Bids and Offers
The MSRB recently released data reflecting the robust use of alternative trading systems (ATSs) by brokers, dealers and municipal securities dealers (collectively, “dealers”) for interdealer municipal securities transactions. In light of developments in the use of ATSs and the role of broker’s brokers, as well as almost two years of experience since the implementation of MSRB Rule G-18, on best execution, which has been a regulatory and examination priority for enforcement agencies, the MSRB is publishing this regulatory reminder to remind dealers about existing regulatory responsibilities related to certain aspects of the practice of filtering (or screening), which may have a negative impact on dealers’ customers, particularly retail investors, and market efficiency.
CSX Information Memorandum 17-09 Amendments to CHX Rules Addressing Qualified Contingent Trades, Cross Orders and CHX Recordkeeping Requirements
On September 22, 2017, the SEC approved Chicago Stock Exchange, Inc. Rule Filing SR-CHX-2017-12 regarding Qualified Contingent Trades (“QCTs”) and related information recording obligations by certain Participants which will become operative on January 9, 2018. The purpose of this Information Memorandum is to discuss the noteworthy changes set forth in the approved rule filing
MSRB Regulatory Notice 2017-25 MSRB to Amend Rule G-34, on CUSIP Numbers, New Issue, and Market Information Requirements
The MSRB received approval from SEC on December 14, 2017, to amend MSRB Rule G-34, on CUSIP numbers, new issue, and market information requirements (the “amendments”). The amendments will codify the MSRB’s longstanding interpretive view that brokers, dealers and municipal securities dealers (collectively, “dealers”) are “underwriters” when acting as placement agent in private placements of municipal securities, including direct purchases. In addition, the amendments will extend to non-dealer municipal advisors, the requirement that a municipal advisor obtain a CUSIP number when advising on a competitive transaction in municipal securities. Finally, the amendments will provide a principles-based exception for dealers (and municipal advisors in competitive sales) from the CUSIP number requirements when selling a new issue of municipal securities in certain circumstances where the dealer or municipal advisor reasonably believes (e.g., by obtaining a written representation) that the present intent of the purchasing entity is to hold the municipal securities to maturity or earlier redemption or mandatory tender. Dealers also will be able to rely on the principles-based exception with respect to the requirement to apply for depository eligibility for a new issue pursuant to Rule G-34. The amendments will become effective on June 14, 2018.
FINRA Regulatory Notice 17-43 Guidance on Reporting Short Interest Positions Held in Master/Sub-Accounts or Parent/Child Accounts
FINRA is issuing this Notice to reiterate that firms must report short positions in each individual firm or customer account on a gross basis under FINRA Rule 4560. Therefore, firms that maintain positions in master/sub-accounts or parent/child accounts must calculate and report short interest based on the short position in each sub- or child account. FINRA has observed that some firms erroneously report a net short interest position for each account grouping, i.e., by parent or master account, rather than reporting on a gross basis for each account, i.e., by child or sub-account.
SR-NASDAQ-2017-121 Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 4759
The purpose of the proposed rule change is to add additional detail about the purposes for which the Exchange uses securities information processor (“SIP”) data pursuant to Rule 4759, and to make other technical corrections to that rule. Rule 4759 lists the proprietary and network processor feeds that are utilized for the handling, routing, and execution of orders, as well as for the regulatory compliance processes related to those functions.
FINRA Regulatory Notice 17-40 FINRA Provides Guidance to Firms Regarding AntiMoney Laundering Program Requirements Under FINRA Rule 3310 Following Adoption of FinCEN’s Final Rule to Enhance Customer Due Diligence Requirements for Financial Institutions
FINRA is issuing this Notice to provide guidance regarding member firms’ obligations under FINRA Rule 3310 (Anti-Money Laundering Compliance Program) in light of the Financial Crimes Enforcement Network’s (FinCEN) adoption of a final rule on Customer Due Diligence Requirements for Financial Institutions (CDD Rule). FinCEN’s CDD Rule became effective July 11, 2016. Member firms must be in compliance with its provisions by May 11, 2018.
The MSRB is seeking comment on how to most effectively further its strategic goal of facilitating compliance and advancing understanding of current MSRB regulatory requirements for brokers, dealers and municipal securities dealers (collectively, “dealers”) and municipal advisors.1 To inform commenters’ responses, this notice details the MSRB’s existing approach to compliance support so that commenters can provide more tailored input and perspectives. This request for comment is intended to inform the development of compliance assistance, and the MSRB is not seeking comment as a precursor to initiating rulemaking.
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