Financial compliance for broker-dealer firms is as crucial as the trades themselves. Firms must take precautions and establish effective methods to stay compliant with the latest regulations since a bad audit or fine can not only blemish a reputation, but also cost a firm millions of dollars. Having an active communication monitoring and archiving solution plays a major role in meeting—and exceeding—the basic compliance requirements established by FINRA and the SEC.
Our FinTech products specialize in financial industry compliance, with particular expertise in FINRA and SEC regulations. Our goal is to help compliance officers do their jobs more efficiently.
Representatives must be able to spot red flags that signal fraudulent or terrorist activity. If there are red flags, a representative must fill out Suspicious Activity Report (SAR) and inform the compliance department.
Occurs when a representative engages in business outside the scope of brokerage business or “sells away” (private securities transaction not at firm). All outside business must be disclosed on U4 to firm.
Sending details for customers to personal email or outside email before leaving a firm.
Financial Regulations Covered
SEC 17a-4: Electronic Storage of Broker-Dealer Records
SEC Regulation S-P: Privacy of Consumer Financial Information
NASD 3010: Supervision
FINRA 2010: Standards of Commercial Honor and Principles of Trade
FINRA 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
FINRA Rule 2210: Communications with the Public
FINRA Rule 2120: Commissions, Mark Ups, and Charges
FINRA 3130: Annual Certification of Compliance and Supervisory Processes
FINRA Rule 3220: Influencing or Rewarding Employees of Others
FINRA 3240: Borrowing or Lending From Customers
FINRA 3270:Outside Business Activities of Registered Persons
FINRA 3310: Anti-Money Laundering Compliance Program
FINRA 4510: Books, Records and Reports
FINRA 4530(a)(1)(B): Reporting Requirements
FINRA Rule 5270: Front Running
FINRA 2111: Suitability
Need a Communication Audit or Discover Solution ?
OBSERV Discovery module helps you to investigate a particular topic. With Predicitive coding capability, just select several similar message and OBSERV will all the responsive communication in your firm email.