The Role of FINRA
FINRA is a government-authorized not-for-profit organization that oversees U.S. broker-dealers. FINRA plays a major role in regulating the U.S. market integrity and protecting investors. To that end, FINRA has rules and guidelines in place to ensure basic protections for investors. Such rules include qualifications for brokers, truth in advertisement, product suitability and product disclosures. Indeed, a FINRA compliance lawyer can help any size firm navigate and comply with the myriad of FINRA rules.
FINRA Compliance Concerns
FINRA compliance issues can run the gamut from reporting errors to failure to make necessary disclosures. Newer technology created the need for additional rules to address cybersecurity and social media posts. The biggest recent compliance change is Regulation Best Interest (“Reg BI”), passed by the SEC in September 2019. FINRA designed Reg BI to raise the broker-investment standard from suitability to best-interest. Furthermore, FINRA is expected to start Reg BI enforcement this month.
FINRA Compliance Lawyers
Lawyers familiar with FINRA compliance know the rules, follow the proposed changes and understand how to evaluate compliance concerns. For example, a FINRA compliance lawyer can represent investment professionals, advisors and managers in compliance examinations, investigations, administrative proceedings and enforcement actions brought by regulatory bodies including the SEC, FINRA and state securities agencies. Additionally, a FINRA compliance lawyer can advise clients on compliance-related matters, such as questions relating to supervision, books-and-records maintenance, Form U-4 and U-5 filings and customer privacy.
Rogge Dunn Group handles a variety of matters across the U.S. in the financial industry area and has a significant amount of experience with FINRA rules and regulations. In fact, one of our partners is a licensed FINRA arbitration attorney.
We transition teams to new firms, handle TROs, fight off non-competes and non-solicits, ensure that the broker recruiting protocol is followed (for signatories), and defend against promissory note enforcement. In addition, our lawyer for financial advisors, branch managers, RIAs and financial executives assists with severance, regulatory issues, letters of education and FINRA investigations.
If you have FINRA questions, contact Rogge Dunn Group for more information.