In this two-hour LIVE webcast, a panel of distinguished professionals and thought leaders will help broker/dealers and financial advisors implement the new FINRA rules. They will discuss important new provisions of the new FINRA consolidated supervision rules and discuss best practices.
Key topics include:
• Supervision (New FINRA Rule 3110)
• Supervisory Control System (New FINRA Rule 3120 )
• Holding Customer Mail (New FINRA Rule 3150 )
• Tape Recording of Registered Persons by Certain Firms (New FINRA Rule 3170 )
And a lot more!
To view the webcast go to this link: http://youtu.be/IPmdXnS0WIE
To learn more about the webcast please visit our website: http://theknowledgegroup.org
FINRA Supervision Rules: What You Need to Know in 2015 LIVE Webcast
1. Speaker Firms and Organization:
Stradley Ronon Stevens & Young, LLP
Lawrence P. Stadulis
Partner
Financial Industry Regulatory Authority,
Inc.
Kosha Dalal
Associate Vice President and Associate
General Counsel
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Presented By:
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October 24, 2014
Partner Firms:
Stradley Ronon Stevens & Young, LLP
Merrill R. Steiner
Partner
Clouse Dunn LLP
Rogge Dunn
Partner
Financial Industry
Regulatory Authority, Inc.
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October 24, 2014
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6. Partner Firms:
October 24, 2014
6
Counseling clients since 1926, Stradley Ronon has
helped private and public companies – from small
businesses to Fortune 500 corporations – achieve their
goals by providing pragmatic, value-driven legal counsel.
With seven offices throughout the mid-Atlantic region, their
responsive team of more than 200 attorneys seamlessly
addresses the full spectrum of our clients’ needs, ranging
from sophisticated corporate transactions to complex
commercial litigation. Stradley Ronon is nationally
recognized for having one of the premier investment
management practices in the United States, representing
investment company clients with more than 1,000 separate
mutual funds and assets under management approaching
$2 trillion. Stradley’s investment management lawyers have
substantial experience representing registered broker-dealers,
including handling all aspects of initial formation and
registration and interfacing with the SEC, FINRA and the IRS
on broker-dealer matters.
Financial Industry
Regulatory Authority, Inc.
7. Brief Speaker Bios:
Kosha Dalal
Kosha Dalal is Associate Vice President and Associate General Counsel with FINRA’s Office of General Counsel. In this role, she
provides legal guidance on various policy initiatives and rule changes/interpretations including, supervision, non-cash compensation,
branch office, customer account statements, payments to unregistered persons and corporate actions. She has been with FINRA’s
Office of General Counsel since 2000. Ms. Dalal also serves on FINRA’s Diversity Leadership Council. Prior to coming to FINRA, she
was an associate with the law firm of Venable in Baltimore, MD, Kalkines Zall in New York, NY and Skaden Arps in New York, NY. Ms.
Dalal attended Columbia University in New York, NY where she received a bachelor’s degree in political science and economics. She
received her law degree from Brooklyn Law School.
7
October 24, 2014
Lawrence P. Stadulis
Lawrence Stadulis is a partner in the Washington, D.C., office of Stradley Ronon, where he heads the firm’s Broker-Dealer Regulatory
Practice and is a member of the firm’s Investment Management/Mutual Funds Practice Group. Mr. Stadulis advises clients in matters
pertaining to the registration and regulation of broker-dealers, investment advisers and investment companies under federal and state
securities laws and FINRA regulations. He handles a broad range of broker-dealer regulatory matters, including membership and
continuing FINRA membership applications, written supervisory procedures and supervisory issues, advertising and marketing issues,
periodic reporting and regulatory examinations issues. Mr. Stadulis is a frequent lecturer and author on legal matters pertaining to the
broker-dealer and investment management industries. Before Stradley Ronon, Mr. Stadulis was a partner at another law firm, and
before that, special counsel in the Office of Chief Counsel, Division of Investment Management, U.S. Securities and Exchange
Commission.
8. Brief Speaker Bios:
Merrill R. Steiner
Merrill Steiner is a partner in the Philadelphia office of Stradley Ronon and member of the firm’s Investment Management/Mutual
Funds Practice Group. Mr. Steiner focuses his practice on federal and state securities law, advising registered and private investment
companies, investment advisers, broker-dealers and commodity trading advisors, as well as other corporations and businesses. His
practice includes providing advice regarding compliance with regulations of federal and state securities and commodities regulatory
authorities and self-regulatory organizations such as the New York Stock Exchange, the (FINRA) and the National Futures
Association.
8
October 24, 2014
Rogge Dunn
Rogge Dunn is a trial attorney and counselor for Fortune 500 companies, wirehouses and prominent Financial Advisors, executives
and entrepreneurs. Dunn has developed a specialty involving significant matters in the financial industry. This includes regulatory
issues, wrongful discharge, moving teams, non-competes, the Protocol for Broker Recruiting, promissory note defense and forfeiture
of deferred compensation. He obtained the largest wrongful discharge arbitration award against Goldman Sachs for an FA in
California. Dunn has represented a number of FAs who have given FINRA on the record statements.
Dunn has won more than $2 billion in judgments and settlements for his clients. He has represented more than 10 FAs in Barron’s top
100 financial advisors nationwide. Dunn has won million dollar jury verdicts or arbitration awards in California, Texas, Louisiana and
Arkansas.
► For more information about the speakers, you can visit: http://theknowledgegroup.org/event_name/finra-supervision-rules-what-you-need-to-know-in-2015-live-webcast/
9. In this two-hour LIVE webcast, a panel of distinguished professionals and thought leaders
will help broker/dealers and financial advisors implement the new FINRA rules. They will
discuss important new provisions of the new FINRA consolidated supervision rules and
discuss best practices.
Key topics include:
• Supervision (New FINRA Rule 3110)
• Supervisory Control System (New FINRA Rule 3120 )
• Holding Customer Mail (New FINRA Rule 3150 )
• Tape Recording of Registered Persons by Certain Firms (New FINRA Rule 3170 )
And a lot more!
9
October 24, 2014
10. Featured Speakers:
10
October 24, 2014
SEGMENT 1:
Kosha Dalal
Associate Vice President and Associate General
Counsel
Financial Industry Regulatory Authority, Inc.
SEGMENT 1:
Lawrence P. Stadulis
Partner
Stradley Ronon Stevens & Young, LLP
SEGMENT 1:
Merrill R. Steiner
Partner
Stradley Ronon Stevens & Young, LLP
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
Financial Industry
Regulatory Authority, Inc.
11. Financial Industry
Introduction
Kosha Dalal is Associate Vice President and Associate General Counsel with FINRA’s Office of General Counsel. In this
role, she provides legal guidance on various policy initiatives and rule changes/interpretations including, supervision, non-cash
compensation, branch office, customer account statements, payments to unregistered persons and corporate
actions. She has been with FINRA’s Office of General Counsel since 2000. Ms. Dalal also serves on FINRA’s Diversity
Leadership Council. Prior to coming to FINRA, she was an associate with the law firm of Venable in Baltimore, MD,
Kalkines Zall in New York, NY and Skaden Arps in New York, NY. Ms. Dalal attended Columbia University in New York, NY
where she received a bachelor’s degree in political science and economics. She received her law degree from Brooklyn
Law School.
11
October 24, 2014
SEGMENT 1:
Kosha Dalal
Associate Vice President and Associate General
Counsel
Financial Industry Regulatory Authority, Inc.
Regulatory Authority, Inc.
12. Introduction
Lawrence Stadulis is a partner in the Washington, D.C., office of Stradley Ronon, where he heads the firm’s Broker-Dealer
Regulatory Practice and is a member of the firm’s Investment Management/Mutual Funds Practice Group. Mr. Stadulis
advises clients in matters pertaining to the registration and regulation of broker-dealers, investment advisers and investment
companies under federal and state securities laws and FINRA regulations. He handles a broad range of broker-dealer
regulatory matters, including membership and continuing FINRA membership applications, written supervisory procedures
and supervisory issues, advertising and marketing issues, periodic reporting and regulatory examinations issues. Mr.
Stadulis is a frequent lecturer and author on legal matters pertaining to the broker-dealer and investment management
industries. Before Stradley Ronon, Mr. Stadulis was a partner at another law firm, and before that, special counsel in the
Office of Chief Counsel, Division of Investment Management, U.S. Securities and Exchange Commission.
Stadulis can be reached at lstadulis@stradley.com, office: 202.419.8407 or cell: 202.378.8774, or on the Stradley Ronon
website at http://www.stradley.com.
12
October 24, 2014
SEGMENT 1:
Lawrence P. Stadulis
Partner
Stradley Ronon Stevens & Young, LLP
13. Introduction
Merrill Steiner is a partner in the Philadelphia office of Stradley Ronon and member of the firm’s Investment
Management/Mutual Funds Practice Group. Mr. Steiner focuses his practice on federal and state securities law, advising
registered and private investment companies, investment advisers, broker-dealers and commodity trading advisors, as well
as other corporations and businesses. His practice includes providing advice regarding compliance with regulations of
federal and state securities and commodities regulatory authorities and self-regulatory organizations such as the New York
Stock Exchange (FINRA) and the National Futures Association.
Steiner can be reached at msteiner@stradley.com, office: 215-564-8039 or cell: 610-745-7996, or on the Stradley Ronon
website at http://www.stradley.com.
13
October 24, 2014
SEGMENT 1:
Merrill R. Steiner
Partner
Stradley Ronon Stevens & Young, LLP
14. SEGMENT 1:
Merrill R. Steiner
Partner
Stradley Ronon Stevens & Young, LLP
The New FINRA Consolidated Supervision Rules
14
October 24, 2014
SEGMENT 1:
Kosha Dalal
Associate Vice President and Associate General
Counsel
Financial Industry Regulatory Authority, Inc.
SEGMENT 1:
Lawrence P. Stadulis
Partner
Stradley Ronon Stevens & Young, LLP
Financial Industry
Regulatory Authority, Inc.
15. Overview
This presentation is intended to cover the modifications to, and
additions incorporated in, FINRA’s four new consolidated
supervision rules, in the following order:
▫ Timing
▫ Highlights
▫ Organization
▫ Content of the Four Rules:
Supervision – 3110
Supervisory Control System – 3120
Holding of Customer Mail – 3150
Taping Rule – 3170
▫ Practical Suggestions
15
Stradley Ronon Stevens & Young, LLP
16. Timing
• All member firms must comply with the new rules by
December 1, 2014.
▫ 38 days and counting
• Therefore, firms should make all changes and implement
the changes by that date.
• If not already addressed, this is a priority; firms need to
act quickly.
• Two of FINRA’s announced priorities in 2013 and 2014 for
examinations are branch office supervision and conflicts of
interest management policies and practices.
16
Stradley Ronon Stevens & Young, LLP
17. Highlights
What Amendments Do
• Rules restate and continue to apply same core supervision concepts.
• Rules codify a number of existing FINRA interpretations.
• Rules add new provisions or guidance, including, among others, in the
following areas
▫ Presence of on-site principal for OSJ
▫ Risk-based review principles
▫ Avoiding conflicts of interest in supervision
▫ Calendar year inspection requirements
▫ Increased inspection report content
▫ Inspections by unregistered Persons
▫ Insider trading policies
▫ Increased content of report to senior management for large firms
• Clarification Regarding Supplementary Material. The adopting release states that
the supplementary material at the end of Rule 3110 is part of the rule, and a provision’s
location as supplementary material is intended to improve the readability of the rule
without affecting the weight, significance, or enforceability of the provision.
Stradley Ronon Stevens & Young, LLP
17
18. Highlights (Continued)
What Amendments Do Not Do
• Do not update the definitions of OSJs and branch offices
• Do not require that supervisory system be designed to include supervision of all
of a member’s business lines irrespective of whether a particular business line
requires registration
• Do not require a designated senior principal to have a physical presence on a
regular periodic schedule at a one-person OSJ
• Do not expand the record retention period from three years to six years
• Do not include a requirement to capture and respond to oral complaints
• Do not require elimination of all conflicts of interest in supervision standards,
which would in effect impose a strict liability standard
Stradley Ronon Stevens & Young, LLP
18
19. Organization
• The Rules essentially amend and replace existing requirements in
previous NASD and NYSE rules and codify various previous
provisions and interpretations under the law and rules, as follows:
▫ Supervision, Rule 3110
Replaces NASD Rule 3010 and corresponding provisions of NYSE Rules and
Interpretations.
▫ Supervisory Control System, Rule 3120
Replaces NASD Rule 3012 and corresponding provisions of NYSE Rules and
Interpretations.
▫ Holding of Customer Mail, Rule 3150
Relocates NASD Rule 3110(i) into a separate standalone rule.
▫ Taping Rule, Rule 3170
Relocates NASD Rule 3010(b)(2) into a separate standalone rule.
19
Stradley Ronon Stevens & Young, LLP
20. Supervision Rule
Supervisory System Requirements
• Main Office Registration. Codifies the long-standing position
that the member’s main office must be registered and designated as
a branch office or OSJ
Rule 3110(a)(3)
20
Stradley Ronon Stevens & Young, LLP
21. Supervision Rule
Supervisory System Requirements (Continued)
• Designated Principals for OSJ
▫ On-site Principals. The Rule clarifies that each member must designate one or
more appropriately registered principals in each OSJ (defined in the Rule as the
“on-site principal”) for which the principal(s) has supervisory responsibilities
and a regular and routine physical presence at the OSJ.
▫ A Principal May Supervise Only One OSJ. The Rule establishes a new
general presumption that a principal will not be designated of assigned to be
the on-site principal to supervise more than one OSJ.
If necessary to designate and assign one registered principal to be the on-site principal for two or
more OSJs, member must consider, among others, the factors on the next slide.
Rule 3110(a)(4)
Stradley Ronon Stevens & Young, LLP
21
22. Supervision Rule
Supervisory System Requirements (Continued)
Factors in Designation of Principal to Supervise More Than One OSJ
The Rule adds a list of the following factors, among others, for the member to
consider in designating and assigning one registered principal to be the on-site
principal for two or more OSJs:
▫ Principal’s qualification by experience/training to supervise the activities and associated
persons in each OSJ;
▫ principal’s capacity and time to supervise the activities and associated persons in each OSJ;
▫ whether the on-site principal is a producing registered representative;
▫ proximity of OSJs to ensure the principal is physically present at each on a regular and routine
basis; and
▫ nature of activities at each OSJ, including size and number of associated persons, scope of
business activities, nature and complexity of products and services, business volume,
disciplinary history of assigned persons, and other indicators of irregularities or misconduct.
(3110(a)(4); and Supp. Materials .03)
22
Stradley Ronon Stevens & Young, LLP
23. Supervision Rule
Supervisory System Requirements (Continued)
Documentation of Factors
The Rule adds that if the member designates and assigns one on-site
principal to supervise more than one OSJ, member
▫ must document in the written supervisory and inspection procedures the
factors used to determine the reasonableness of such supervisory
structure, and
▫ Member’s determination of reasonableness will be subject to scrutiny by
FINRA. (3110(a)(4); and Supp. Materials .03)
23
Stradley Ronon Stevens & Young, LLP
24. Supervision Rule
Supervisory System Requirements (Continued)
Need Not Hold In-Person Annual Compliance Meetings.
• The Rule continues without change the requirement for an annual
compliance meeting for each registered principal and registered
representative, but codifies existing guidance that members are not
required to conduct in-person meetings –
▫ if use other methods, such as on-demand webcast or course, video conference, or
other electronic means), must ensure each registered person
attends the entire meeting, using, for example, user IDs and passwords to gain
access, technology to track time spent, provide click-as-you go confirmation, with
attestation of completion at the end, and
is able to ask questions regarding the presentation and receive answers in a timely
fashion. (3110(a)(7); and Supp. Material .04 )
24
Stradley Ronon Stevens & Young, LLP
25. Supervision Rule
Written Procedures
Written Review of All Transactions
• The Rule continues to require, based on the replaced rule, that the
supervisory procedures must provide for the review
▫ By a registered principal,
▫ Evidenced in writing,
▫ Of all transactions relating to the “investment banking or securities
business” of the member
"investment banking or securities business" means the business, carried on by a broker,
dealer, or municipal securities dealer (other than a bank or department or division of a
bank), or government securities broker or dealer, of underwriting or distributing
issues of securities, or of purchasing securities and offering the same for sale
as a dealer, or of purchasing and selling securities upon the order and for the
account of others.” FINRA Corp. Bylaws, Art. I(u).
Rule 3110(b)(2)
25
Stradley Ronon Stevens & Young, LLP
26. Supervision Rule
Written Procedures (Continued)
Written Review of All Transactions (Continued)
• Risk-Based Review System. As a new provision, for this required written review of all transactions,
member is not required to conduct detailed reviews of each transaction, but may now use
▫ A reasonably designed risk-based review system
▫ That permits focus on the areas that pose the greatest numbers and risks of violation, but
▫ Principal using the system remains responsible for compliance with Rule and any deficiency in the system’s
criteria. (Supp. Material .05 & Reg Notice 10-14, Section I.B.1.) [TP]
• Member Not Engaged in Effecting Securities Transactions. A firm that does not engage in any
transactions relating to its “investment banking or securities business”
(e.g., firm conducting only a mutual fund underwriting business that effects no transactions)
▫ does not have any review obligations and
▫ may comply by acknowledging in its supervisory procedures that
it does not engage in any such transactions and
it must have supervisory policies and procedures in place before doing so.
(Supp. Material .05 & Reg Notice 10-14, Section I.B.1.) [TP] Rule 3110(b)(2)
26
Stradley Ronon Stevens & Young, LLP
27. Supervision Rule
Written Procedures (Continued)
Written Review of All Transactions (Continued)
• Use of Technology-Based Review Systems. In a clarification based on
prior guidance, if a firm’s procedures for the review of its transactions
include the use of technology-based review systems with parameters
designed to assess which transactions merit further review, a principal
▫ must review the parameters and document the review in writing;
▫ remains responsible for the discharge of supervisory responsibilities; and
▫ is responsible for any deficiency in the system’s criteria that would result in the
system not being reasonably designed. (Reg Notice
10-14, Section I.B.1., Citing Reg. Notice 07-53 (Nov 2007)) Rule 3110(b)(2)
Stradley Ronon Stevens & Young, LLP
27
28. Supervision Rule
Written Procedures (Continued)
Review of Correspondence and Internal Communications
• The Rule generally incorporates and expands on the replaced rule requiring
members to have supervisory procedures to review correspondence and internal
communications relating to the member's “investment banking or securities business,” as
follows,
▫ Correspondence. Member must review incoming and outgoing hard copy or electronic
written correspondence to properly identify and handle in accordance with firm
procedures,
customer complaints, instructions, funds and securities, and
That are communications of a subject matter that require review under FINRA
rules and federal securities laws, and
▫ Internal Communications. The Rule expressly adds that the member must review
internal communications to properly identify those communications that are of a
subject matter that require review under FINRA rules and federal securities laws.
Rule 3110(b)(4) [TP]
28
Stradley Ronon Stevens & Young, LLP
29. Supervision Rule
Written Procedures (Continued)
Review of Correspondence and Internal Communications (Continued)
• Use of term “Correspondence.” The Rule’s use of the term “correspondence” is
to be consistent with FINRA Rule 2210’s (Communications with the Public)
definition and use of the term “correspondence.” (Reg Notice 10-14, Endnote 10.)
• Subject Matter Requiring Review. Communications that are of a subject
matter that require review under FINRA rules and the federal securities laws include
(without limitation):
• Communications between non-research and research departments concerning a research report’s
contents (NASD Rule 2711(b)(3) and NYSE Rule 472(b)(3));
• Certain communications with the public that require a principal’s pre-approval (FINRA Rule 2210);
• The identification and reporting to FINRA of customer complaints (FINRA Rule 4530) (as further
detailed herein, FINRA Rule 3110(b)(5) also affirmatively requires firms to capture, acknowledge and
respond to all written (including electronic) customer complaints); and
• The identification and prior written approval of changes in account name(s) (including related
accounts) or designation(s) (including error accounts) regarding customer orders (FINRA Rule
4515). (Reg Notice 10-14, Endnote 11.) Rule 3110(b)(4)
Stradley Ronon Stevens & Young, LLP
29
30. Supervision Rule
Written Procedures (Continued)
Review of Correspondence and Internal Communications (Continued)
Codification of Required Manner and Evidence of Review. The Rule continues to
require that review be appropriate for the member's business, size, structure, and customers, and
codifies existing guidance that reviews are to be
▫ conducted by a registered principal, and
▫ evidenced in writing, either electronically or on paper. (Reg Notice 10-14, Sec. I.B.2)
Use of Risk-based Principles for Review. Rule reflects existing guidance permitting use
of risk-based principles to review communications, where member determines that:
▫ Some incoming and outgoing correspondence, having none of the subject matters
listed above, is necessary for its business and structure, and does not require review
before use or distribution, in which case, the procedures must provide for:
the education/training of associated persons of the procedures governing correspondence;
the documentation of such education and training; and
surveillance and follow-up to ensure such procedures are implemented and followed; and
▫ Some internal communications, having none of the subject matters that requires
review by rule or law, are necessary for its business and structure -- Rule and guidance do
not require a member to review every internal communication. (Supp. Materials .06;
and Reg Notice 10-14, Sec. I.B.2(i) and endnote 13, citing Reg. Notice 07-59.) [TP] Rule 3110(b)(4)
30
Stradley Ronon Stevens & Young, LLP
31. Supervision Rule
Written Procedures (Continued)
Review of Correspondence and Internal Communications (Continued)
• Codification of Criteria for Evidence of Review. The Rule codifies existing guidance that
evidence of review must be chronicled either electronically or on paper and clearly
identify
▫ the reviewer,
▫ the internal communication or correspondence that was reviewed,
▫ the date of review, and
▫ the actions taken by the member as a result of any significant regulatory issues identified during the review.
Merely opening a communication is not sufficient. (Supp. Material .07 and Reg. Notice 14-10, Section I.B.2.(ii))
• Guidance Clarified for Permitted Use of Lexicon-based Screening Tools or Systems
for Electronic Communications. Rule continues to permit members to use lexicon-based
screening tools or systems of electronic communications, provided the supervisor
▫ understands the limitations of the tools/systems,
▫ remains responsible for the discharge of supervisory responsibilities in compliance with the rule and
▫ is responsible for any deficiency in the system's criteria that would result in the system not being reasonably
designed.
(Reg. Notice 14-10, Section I.B.2.(ii) and Regulatory Notice 07-59 – “as noted in Regulatory Notice 07-59
firms using automated tools or systems in the course of their supervisory review of electronic
communications must have an understanding of the limitations of those tools or systems and should consider
what, if any, further supervisory review is necessary in light of those limitations”.) [TP] Rule 3110(b)(4)
31
Stradley Ronon Stevens & Young, LLP
32. Supervision Rule
Written Procedures (Continued)
Review of Correspondence and Internal Communications (Continued)
• Codification of Permitted Delegation of Review Functions. The Rule codifies existing
guidance that a supervisor or principal may delegate review functions to an unregistered
person, but supervisor or principal
▫ remains ultimately responsible for the performance of all necessary supervisory reviews,
▫ must take reasonable and appropriate action so that delegated functions are properly executed, and
▫ should evidence performance of their procedures sufficiently to demonstrate overall supervisory
control. (Supp. Mat. .08; Reg. Notice 14-10, Sec. I.B.2(iii)) [TP]
• Alignment of Retention Period for Communications. The Rule adds that a member must
retain the internal communications and correspondence of its associated persons as to its
“investment banking or securities business”
▫ for the period of time and accessibility specified in SEA Rule 17a-4(b) (three years) and with
names of persons who prepared and reviewed the correspondence.
(Supp. Material .09 and Reg. Notice 14-10, endnote 18: The rule purposefully aligns the record retention period
for communications with the SEC’s record retention period for the same types of communications to achieve
consistent regulation in this area. ) [TP] Rule 3110(b)(4)
32
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33. Supervision Rule
Written Procedures (Continued)
Review of Customer Complaints
• Clarification of Requirements for Review of Customer Complaints. Member review of
complaints must include procedures to capture, acknowledge, and respond to all hard copy or
electronic written customer complaints.
▫ Rule does not include review of oral complaints because they are difficult to capture and
assess and may raise competing views as to the substance of the complaint being alleged.
▫ FINRA encourages firms to provide customers with a form or other format that will allow
customers to communicate their complaints in writing.
▫ FINRA also reminds firms that the failure to address any customer complaint, written or
oral, may be a violation of FINRA Rule 2010 (Standards of Commercial Honor and Principles
of Trade).
▫ To harmonize the NASD and NYSE rules, FINRA amended incorporated NYSE Rule 351(d)
(Reporting Requirements) to limit the definition of “customer complaint” to include only
written complaints, thereby making the definition substantially similar to that in NASD Rule
3070(c) (Reporting Requirements).
▫ NASD Rule 2340(a) (Customer Account Statements) requires a customer account statement
to advise the customer that any oral communications should be re-confirmed in writing to
further protect the customer’s rights, including rights under the Securities Investor Protection
Act (SIPA)). (Reg. Notice 14-10, Sec. I.B.3 and endnotes 19-20.) Rule 3110(b)(5)
Stradley Ronon Stevens & Young, LLP
33
34. Supervision Rule
Written Procedures (Continued)
Documentation and Supervision of Supervisory Personnel.
• Elimination of Two Aspects of Supervision. The Rule eliminates
▫ provisions specifying the supervision of a producing manager's customer account activity and
▫ heightened supervision when any producing manager's revenues rise above a specific
threshold.
• Prohibited Supervision Situations. Instead, the Rule expressly requires, with certain
exceptions, the written procedures to prohibit APs from
▫ supervising their own activities, and
▫ reporting to, or having their compensation or continued employment determined by, a
person(s) they are supervising.
(Reg. Notice 14-10, Sec. I.B.4) [TP] Rule 3110(b)(6)
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Stradley Ronon Stevens & Young, LLP
35. Supervision Rule
Written Procedures (Continued)
Documentation and Supervision of Supervisory Personnel (Continued)
• Documentation of Limited Exceptions. The Rule adds a limited exception that
if a member cannot, as to any supervisor, comply with a prohibition in the above
bullet point (because of the member's size or the supervisor's position with the
member), the member must document:
▫ the factors the member used to reach such determination; and
▫ how the supervisory system for such supervisor otherwise complies with
paragraph (a) of this Rule.
▫ Rule adds a list of possible factors and reflects FINRA’s expectation that this
exception will be used primarily by a sole proprietor in a single-person firm or
where a supervisor holds a very senior executive position within the firm.
▫ Member not required to notify FINRA of reliance on this exception. (Firms have
in past provided this notification through the FINRA Contact System (FCS).
Effective December 1, 2014, firms will no longer be required to provide this
information, and FINRA intends to disable FCS’s notification feature.
(Supp. Material .10; Reg. Notice 14-10, Sec. I.B.4(i); and endnote 24) [TP] Rule 3110(b)(6)
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36. Supervision Rule
Written Procedures (Continued)
Documentation and Supervision of Supervisory Personnel (Continued)
• Conflicts of Interest That May Compromise Supervision by Supervisory Personnel.
As a new provision, the Rule adds an express requirement that the written supervisory
procedures (“WSP”) must be reasonably designed to prevent the member’s supervisory system
from being compromised due to
▫ conflicts of interest that may be present with respect to the associated person being supervised, including
the position of such person,
the revenue such person generates for the firm, or
any compensation that the associated person conducting the supervision may derive from the associated
person being supervised. (3110(b)(6)(D))
▫ Does not impose a strict liability obligation to eliminate all conflicts of interest,
▫ Rather requires that the WSPs be reasonably designed despite a firm's conflicts of interest.
(Reg. Notice 14-10, Sec. I.B.4(ii).) [TP] Rule 3110(b)(6)
Stradley Ronon Stevens & Young, LLP
36
37. Supervision Rule
Written Procedures (Continued)
Maintenance of Written Supervisory Procedures
• Prompt WSP Amendments and Communication of Amendments.
The Rule introduces the term “promptly” in amending, and communicating
amendments of, the WSP – each Member
▫ Is required to promptly amend its WSPs to reflect changes in applicable
securities laws or rules and in its supervisory system; and
▫ Is required to promptly communicate its WSPs and amendments thereto
(“as amended WSPs”) to all associated persons to whom such as amended
WSPs are relevant based on activities and responsibilities. Rule 3110(b)(7)
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38. Supervision Rule
Written Procedures (Continued)
Maintenance of Written Supervisory Procedures (Continued)
• Use of Electronic Media to Communicate WSPs. Rule adds express
permission for member to use electronic media to communicate its WSP
and amendments to the WSP, if
▫ WSP with amendments are communicated on, and are readily accessible through,
for example, the member's intranet system;
▫ WSP with amendments are promptly posted to the media;
▫ Notice is given to APs of postings;
▫ Reasonable procedures are effected to monitor and maintain the security of the
postings to prevent unauthorized changes; and
▫ Member complies with record retention requirements of SEA Rule 17a-4(e)(7).
(Supp. Material .11; Reg. Notice 14-10, Sec. I.B.5; and endnotes 26-27) Rule 3110(b)(7)
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39. Supervision Rule
Internal Inspections
• Internal Inspections. Rule retains same review of businesses and inspection of
locations requirements, except the Rule adds the following:
▫ Annual Calendar Year Basis Review/Inspections. The Rule has a new
requirement that the review/inspections be on an annual calendar year
basis.
▫ Presumed Requirement for 3-Year Inspection Cycle for Non-Branch
Locations. Rule imposes new presumption that member inspect a non-branch
location at least every three years, and if the period is longer than that, the
member must document the factors used to support the longer period.
(Supp. Materials .13 and Reg. Notice 14-10, Sec. I.C.1.) [TP] Rule 3110(c)(1)
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40. Supervision Rule
Internal Inspections (Continued)
Standards for Reasonable Review. Rule adds list of standards for reasonable review --
the member’s WSPs must take into consideration, among other things,
▫ firm's size,
▫ organizational structure,
▫ scope of business activities,
▫ number and location of the firm's offices,
▫ nature and complexity of the products and services offered by the firm,
▫ volume of business done,
▫ number of associated persons assigned to a location,
▫ disciplinary history of registered representatives or associated persons, and
▫ any indicators of irregularities or misconduct (i.e., "red flags"), etc.
• WSPs and reviews must provide that the quality of supervision at remote locations is
sufficient to ensure compliance with applicable securities laws and regulations
• Must be especially diligent with respect to a non-branch location where a registered
representative engages in securities activities.
• Based on the factors outlined above, may need to
▫ impose reasonably designed supervisory procedures for certain locations or
▫ Provide for more frequent reviews of certain locations. (Supp. Materials .12) Rule 3110(c)(1)
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41. Supervision Rule
Internal Inspections (Continued)
Inspection Report Content. The Rule expands on two of areas of the inspection report
content. The report must include testing and verifying a location's policies and procedures, including
supervisory policies and procedures:
▫ As in the prior rule, the areas of safeguarding of customer funds and securities; maintaining books
and records; and supervision of supervisory personnel;
▫ As an expansion of the prior rule, in the areas of transmittals of funds or securities from customers to
third party accounts; from customer accounts to outside entities; from customer accounts to locations other
than a customer's primary residence; and between customers and registered representatives, including the
hand-delivery of checks; and
▫ As an expansion of the prior rule, in the areas of changes of customer account information, including
address and investment objectives changes, and validation of such changes.
▫ For the areas of transmittals of funds or securities, the Rule clarifies that all transmittals to an
account where a customer on the original account is not a named account holder are subject to the rule, as
follows:
Implements this change by not including replaced NASD Rule 3012's parenthetical text ("i.e., a
transmittal that would result in a change in beneficial ownership");
Provides an important investor protection function by requiring verification that the customer was aware
of the transfer and
Codifies provision that a member may use a reasonable risk-based criteria to determine the authenticity of
the transmittal instructions. (Reg. Notice 14-10, Sec. I.C.2; and endnote 34.) Rule 3110(c)(2)
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42. Supervision Rule
Internal Inspections (Continued)
Inspection Report Content (Continued)
▫ For the areas of changes of customer account information, the Rule adds that
This include means or method of customer confirmation that can be documented and complies with SEA
Rules 17a-3(a)(17)(i)(B)(2) and 17a-3(a)(17) (i)(B)(3); and
Member must have procedures to monitor all changes of customer account information and not only
address and investment objective changes, such as changes to a customer's name, marital status,
telephone, email or other contact information.
▫ Member may delegate reviews of such changes to an appropriately qualified person who is not a
principal, unless another FINRA or SEC rule would require principal review (e.g., FINRA Rule 4515
prohibits an account name or designation change unless authorized by a qualified and registered principal
designated by the firm). (Reg. Notice 14-10, Sec. I.C.2.)
• Documentation of Activities Not Engaged In. The Rule adds that if an
inspected location does not engage in all of the activities listed above, firm must
▫ identify activities not engaged in and
▫ document that supervisory policies and procedures must be in place at that location if in the future, location
does engage in any such activities. Rule 3110(c)(2)
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43. Supervision Rule
Internal Inspections (Continued)
• Preventing Compromise of Office Inspections. The Rule replaces the prior provision
prohibiting branch office managers and supervisors and the persons they directly or
indirectly supervise from conducting inspections and imposes less prescriptive
requirements to prevent office inspections from being compromised by conflicts
of interest
▫ In most cases, an associated person (“AP”) may not conduct a location’s inspection
where
AP is assigned to the location or
AP is directly or indirectly supervised by, or reporting to, a person assigned to the location.
▫ Member must consider factors such as economic, commercial or financial interests in
the associated person and businesses being inspected.
▫ Does not prohibit use of compliance personnel
assigned to a firm's separate compliance department and
supervised solely by the compliance department to conduct a location's inspections.
Such an arrangement helps to protect against the potential conflicts of interest the
provision is designed to address. (Reg. Notice 14-10, Section I.C.3.) Rule 3110(c)(3)
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44. Supervision Rule
Internal Inspections (Continued)
Preventing Compromise of Office Inspections (Continued)
• The Rule retains with modifications the requirement that if a member determines
that it cannot comply with above requirement,
▫ either because of a member's size or its business model,
▫ Member must document in the inspection report both the factors the member used
to make its determination and how the inspection otherwise complies with paragraph (c)(1) of
the Rule.
• Factors Supporting Limited Exception. Factors indicating it is not possible to
comply with Rule as to who is not allowed to conduct a location's inspection generally
are:
▫ the member has only one office; or
▫ the member has a business model where small or single-person offices report directly to an
OSJ manager who is also considered the office’s branch office manager (Supp. Materials
.14) Rule 3110(c)(3)
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Stradley Ronon Stevens & Young, LLP
45. Supervision Rule
Internal Inspections (Continued)
Preventing Compromise of Office Inspections (Continued)
• Registered Principal Not Required for Inspection. The Rule eliminates restriction in
replaced rule that a firm relying on the exception must have a principal who has the requisite
knowledge to conduct the inspection.
▫ Firm has flexibility to assign the most appropriate person who has the requisite knowledge, regardless of
registration status, to conduct a location's inspection, taking into consideration the requirement that a
firm's review of its businesses be reasonably designed to detect and prevent violations of, and achieve
compliance with, laws and regulations. (Reg. Notice 14-10, Section I.C.4.)
• Not required to eliminate all conflicts of interest for a location's inspections, but
▫ To meet Rule’s requirements, member should be diligent in identifying
potential conflicts of interest and
How they will be addressed to prevent a location's inspection from being compromised. (Reg. Notice 14-10,
Section I.C.5)
• Elimination of Heightened Office Inspection Requirements. The Rule eliminates NASD
Rule 3010(c)(3)'s heightened office inspection requirements that firms must implement under
certain circumstances, replacing this with procedures reasonably designed to avoid
compromised inspections. Rule 3110(c)(3)
45
Stradley Ronon Stevens & Young, LLP
46. Supervision Rule
Transaction Review and Investigation
Process for Review of Transactions for Potential Insider Trading. The Rule
codifies Section 15(g) of the Securities Exchange Act of 1934 (“SEA”) applicable to
broker-dealers and extends NYSE Rule 342.21 beyond NYSE-listed securities and
related financial instruments to cover all securities. The Rule requires that the
supervisory procedures must include a process
▫ for review and investigation of potential violations of the Exchange Act, rules thereunder or
FINRA rules,
▫ to identify potential insider trading or other manipulative or deceptive devices.
• Account Transactions to be Reviewed. Member must review transactions effected for
▫ Accounts of the member;
▫ Accounts introduced or carried by the member in which an AP of the Member has a beneficial
interest or the authority to make investment decisions;
▫ Accounts of an AP of the member disclosed to the member pursuant to NASD Rule 3050 or
NYSE Rule 407, as applicable; and
▫ “Covered accounts” as newly defined in Rule. [TP] Rule 3110(d)(1)
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Stradley Ronon Stevens & Young, LLP
47. Supervision Rule
Transaction Review and Investigation (Continued)
Process for Review of Transactions (Continued)
• “Covered Accounts” include any account introduced or carried by the member
that is held by:
▫ the spouse of an AP of the member;
▫ a child of the AP of the member or such person's spouse, if the child resides in the
same household as, or depends financially on, the AP;
▫ any other related individual over whose account the AP of the member has
control; or
▫ any other individual over whose account the AP of the member has control and to
whose financial support such AP materially contributes. Rule 3110(d)(1)
47
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48. Supervision Rule
Transaction Review and Investigation (Continued)
Process for Review of Transactions (Continued)
• When Prompt Internal Investigation Triggered. Each member must conduct
promptly an internal investigation into any identified potential violative trade to
determine whether a violation of those laws or rules has occurred. (3110(d)(2))
• Gauging Risk of Insider Trading.
▫ Firms should take the risks of insider trading based on their business model into account when
developing their policies and procedures
▫ In implementing a firm’s risk-based approach to these requirements, a firm’s procedures should
include establishing guidelines or criteria for taking reasonable follow-up steps to determine
which trades are potentially violative trades and
therefore, merit further review via an internal investigation.
▫ FINRA does not expect that every trade highlighted in an exception or other report would require a
firm to conduct an internal investigation. (Reg. Notice 14-10, Section I.[D].2.) Rule 3110(d)(2)
48
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49. Supervision Rule
Transaction Review and Investigation (Continued)
• Filing Written Reports of Internal Investigations with FINRA. Member engaging in
investment banking services must file with FINRA, written report, signed by member’s
senior officer,
▫ Each Calendar Quarter. Within ten business days of the end of each calendar quarter,
a report describing each internal investigation initiated in the previous calendar
quarter with
the identity of the member, the date each internal investigation commenced, the status of
each open internal investigation, the resolution of any internal investigation reached
during the previous calendar quarter, and, with respect to each internal investigation, the
identity of the security, trades, accounts, APs of the member (including APs with respect to
a covered account) under review, and a copy of the member's WSPs required by Rule
3110(d)(1).
If a firm did not have an open internal investigation, or either initiate or complete an
internal investigation during a particular calendar quarter, the firm is not required to
submit a report for that quarter. (Reg. Notice 14-10, Section I.[D].2(i)) Rule 3110(d)(2)&(3)
Stradley Ronon Stevens & Young, LLP
49
50. Supervision Rule
Transaction Review and Investigation (Continued)
Filing Written Reports of Internal Investigations with FINRA (Continued).
• “Investment Banking Services” A firm engages in “investment banking services” if it, without limitation,
acts as an underwriter;
participates in a selling group in an offering for the issuer or otherwise acts in furtherance of a public offering of the
issuer;
acts as a financial adviser in a merger or acquisition; or
provides venture capital or equity lines of credit or serves as placement agent for the issuer or otherwise acts in
furtherance of a private offering of the issuer. (Reg. Notice 14-10, Section I.[D].2.)
• Upon Completion of an Internal Investigation. Within five business days of completion of an
internal investigation that determines that a violation of the law or rules prohibiting insider trading and
manipulative and deceptive devices has occurred, member engaging in investment banking
services must file with FINRA, written report, signed by member’s senior officer,
detailing the completion of the investigation, including
the results of the investigation, any internal disciplinary action taken, and
any referral of the matter to FINRA, another self-regulatory organization, the SEC, or any other
federal, state, or international regulatory authority. Rule 3110(d)(3)
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51. Supervisory Control System
Rule 3120
• Change in Requirement For Supervisory Control System. The
Rule is based on the prior rule but adds a provision with respect to
maintaining and enforcing the supervisory control system, as follows:
• Content of Annual Report for Certain Members. For members with
more than $200 million in gross annual revenue, the annual report to
senior management must include, where applicable, a
▫ listing of reports for the year to FINRA of customer complaints and internal
investigations, and
▫ description of the prior year’s compliance efforts, including procedures and
educational programs relating to certain enumerated operating areas, practices
and supervision. [ TP]
• Definition of “Gross Revenue”. The Rule adds a definition of “gross
revenue” that generally subtracts commodities revenue, if applicable, from
total revenue as reported in the FOCUS report.
51
Stradley Ronon Stevens & Young, LLP
52. Holding of Customer Mail
Rule 3150
Changes to Requirements for Holding Customer Mail. The
Rule eliminates the strict time limits in the prior rule and generally
allows a firm to hold a customer’s mail for a specific time period in
accordance with the customer’s written instructions if the firm meets
several conditions.
• Conditions for Holding Mail. The Rule continues to permit a
member to hold customer’s mail for up to three months
▫ as requested by written instructions of the customer
▫ if the customer will not receive mail at the usual address.
• Longer Holding Period. Under the Rule customers may request
a longer holding period,
▫ if the customer's instructions include an acceptable reason for the
request (e.g., safety or security concerns), not just convenience. [TP]
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53. Holding of Customer Mail
Rule 3150
Changes to Requirements for Holding Customer Mail (Continued)
• Conditions for holding a customer’s mail. The member must
▫ Inform the customer in writing of any alternate methods, other than holding the
customer’s mail, such as email or access through the member's website, to receive
or monitor account activity and information; and
▫ Obtain the customer's confirmation of the receipt of such information;
▫ Verify at reasonable intervals that the customer's instructions still apply;
▫ Be able, while the member is holding the mail, to communicate with the customer
in a timely manner, as necessary; and
▫ Take actions reasonably designed to ensure that the customer's mail
is not tampered with,
held without the customer's consent, or
used by an AP of the member in any manner violating FINRA rules or federal
securities laws.
53
Stradley Ronon Stevens & Young, LLP
54. Taping Rule
Rule 3170
• Previous Taping Requirements Kept. The Rule reconstitutes NASD Rule 3010(b)(2)
without any substantive changes and adds some provisions, as follows:
• Added Definition of Term “Tape Recording”
• Added Requirements for “Taping Firms.” The Rule requires a member
▫ that is notified by FINRA, or otherwise has actual knowledge, that it is a “taping firm” (based
on how many of its “registered persons” were associated with a “disciplined firm” during the
past 3 years)
▫ to have and enforce special written procedures for supervising the telemarketing activities of
all of its registered persons,
▫ including procedures for tape recording and reviewing all telephone conversations.
• FINRA’s “Disciplined Firms List” To assist firms in complying with the Rule, FINRA
provides a “Disciplined Firms List” identifying those firms that meet the definition of
“disciplined firm.”
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Stradley Ronon Stevens & Young, LLP
55. Practical Suggestions
Member’s written supervisory procedures must be updated for the changes in Rule 3110
and other new FINRA rules.
Designate appropriately registered principal(s) for supervised persons and for office locations.
Will need to report changes and implementation in meetings with management for
annual Rule 3130 certification and report to Board
Ensure that all registered personnel are notified of the changes before the changes go into
effect for compliance and so the changes can be implemented in a timely manner.
Annual Calendar Year Basis Review/Inspections. The Rule has a new requirement that
the review/inspections be on an annual calendar year basis. Does this mean if member
has not done review this year yet, review must be done between Dec. 1 and 31, 2014?
FINRA Retrospective Review. Let FINRA know if the new rules cause difficulties, as
FINRA indicates that the new rules will be subject to FINRA retrospective review for
appropriateness and possible adjustment.
55
Stradley Ronon Stevens & Young, LLP
56. Introduction
Rogge Dunn is a trial attorney and counselor for Fortune 500 companies, wirehouses and prominent Financial Advisors,
executives and entrepreneurs. Dunn has developed a specialty involving significant matters in the financial industry. This
includes regulatory issues, wrongful discharge, moving teams, non-competes, the Protocol for Broker Recruiting, promissory
note defense and forfeiture of deferred compensation. He obtained the largest wrongful discharge arbitration award against
Goldman Sachs for an FA in California. Dunn has represented a number of FAs who have given FINRA on the record
statements.
Dunn has won more than $2 billion in judgments and settlements for his clients. He has represented more than 10 FAs
in Barron’s top 100 financial advisors nationwide. Dunn has won million dollar jury verdicts or arbitration awards in
California, Texas, Louisiana and Arkansas.
Dunn can be reached at dunn@financialadvisorlaw.com, 214-220-0077 or on his website
at http://www.cdklawyers.com/rogge_dunn.html
56
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
57. 8310. Sanctions for Violation of the Rules
(a) Imposition of Sanction
After compliance with the Rule 9000 Series, FINRA may impose one or more of the following sanctions
on a member or person associated with a member for each violation of the federal securities laws, rules or regulations
thereunder, the rules of the Municipal Securities Rulemaking Board, or FINRA rules, or may impose one or more of the
following sanctions on a member or person associated with a member for any neglect or refusal to comply with an
order, direction, or decision issued under the FINRA rules:
(1) Censure a member or person associated with a member;
(2) Impose a fine upon a member or person associated with a member;
(3) Suspend the membership of a member or suspend the registration of a person associated with a member for a
definite period or a period contingent on the performance of a particular act;
(4) Expel a member, cancel the membership of a member, or revoke or cancel the registration of a person
associated with a member;
(5) Suspend or bar a member or person associated with a member from association with all members;
(6) Impose a temporary or permanent cease and desist order against a member or a person associated with a
member; or
(7) Impose any other fitting sanction.
(b) Assent to Sanction
Each party to a proceeding resulting in a sanction shall be deemed to have assented to the imposition of the sanction
unless such party files a written application for appeal, review, or relief pursuant to the Rule 9000 Series
57
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
58. 8310. Sanctions for Violation of the Rules
58
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
59. 59
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
(1) Censure
60. (2) Impose a fine.
60
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
61. (3) Suspend Membership
61
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
62. (4) Expel
62
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
63. (5) Suspend or bar a member
63
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
64. (6) Impose a temporary or
permanent cease and desist
order
64
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
65. (7) Impose any other fitting
sanction.
65
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
66. FIRST RESPONSE/NOTICE
66
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
You receive ITR requesting documents and OTR
First, hire and meet with your attorney
Notify compliance same day you receive OTR
If possible, delay meeting with compliance until after you’ve received
your attorney’s advice
Enlist the aid of your branch manager
67. MEETING/CALL WITH YOUR ATTORNEY
67
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
Fully disclose all possible issues to your attorney
Discuss all anticipated areas of inquiry/questioning
Discuss positioning your situation with Firm/compliance
68. ANALYZE YOUR SITUATION
68
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
Are you and your Firm Adverse?
Will the Firm make you a scapegoat?
Is issue “financial products” or account handling
69. MEETING WITH COMPLIANCE
69
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
Don’t volunteer
Answer all questions directly/honestly.
70. REACHING OUT TO FINRA
70
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
Have your attorney try to learn FINRA’s stated and ulterior
goal(s).
71. DEVELOP YOUR TALKING POINTS
LEARN YOUR BUOYS
71
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
72. CLIENT MADE CONSCIOUS, INFORMED CHOICE
The “C” word
I warned client many times about
Client’s knowing choice, against your repeated advice
72
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
73. CONTRITION, BUT ONLY WHERE APPROPRIATE
I know I made a mistake
I'm very sorry
It will never happen again
I have taken the following (specific) steps to
ensure never happens again
73
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
74. HOMEWORK BEFORE OTR
Review your Talking Points
Review docs you will be bringing to the OTR
Review docs you, your attorney and compliance anticipate you will be
questioned about
74
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
75. CLEAR YOUR MIND
Relax take one or two days off before OTR
75
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
76. MOST IMPORTANT
Get a good night's sleep!
76
October 24, 2014
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
77. 77
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PRIVATE LABEL PROGRAM & INTERNAL TRAINING
The Knowledge Group provides complete private label webcasts and in-house training solutions. Developing and executing webcasts can
be a huge logistical nightmare. There are a lot of moving parts and devolving a program that is executed smoothly and cost effectively can
prove to be a significant challenge for companies who do not produce events on a regular basis. Live events require a high level of
proficiency in order to execute proficiently. Our producers will plan and develop your webcast for you and our webcast technicians will
execute your live event with expert precision. We have produced over 1000 live webcasts. Put our vast expertise to work for you. Let us
develop a professional webcast for your firm that will impress all your clients and internal stakeholders.
Private Label Programs Include:
Complete Project Management
Topic Development
Recruitment of Speakers (Or you can use your own)
Marketing Material Design
PR Campaign
Marketing Campaign
Event Webpage Design
Slides: Design and Content Development
Speaker coordination: Arranging & Executing Calls, Coordinating Slides & Content
Attendee Registration
Complete LIVE Event Management for Speaker and Attendees including:
o Technical Support
o Event Moderator
o Running the Live event (All Aspects)
o Multiple Technical Back-ups & Redundancies to Ensure a Perfect Live Event
o Webcast Recording (MP3 Audio & MP4 Video)
o Post Webcast Performance Survey
CLE and CPE Processing
Private Label Programs Start at just $999
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October 24, 2014
RESEARCH & BUSINESS PROCESS OUTSOURCING
The Knowledge Group specializes in highly focused and intelligent market and topic research. Outsource your research projects and business processes to our
team of experts. Normally we can run programs for less than 50% of what it would cost you to do it in-house.
Here are some ideal uses for our services:
Market Research and Production
o List Research (Prospects, Clients, Market Evaluation, Sales Lists, Surveys)
o Design of Electronic Marketing Collateral
o Executing Online Marketing Campaigns (Direct Email, PR Campaigns)
o Website Design
o Social Media
Analysis & Research
o Research Companies & Produce Reports
o Research for Cases
o Specialized Research Projects
eSales (Electronic Inside Sales – Email and Online)
o Sales Leads Development
o eSales Campaigns
Inside Sales people will prospect for leased, contact them and coordinate with your sales team to follow up.
Our Inside eSales reps specialize in developing leads for big-ticket enterprise level products and services.
o Electronic Database Building – Comprehensive service which includes development of sales leads, contacting clients, scoring leads, adding notes
and transferring the entire data set to you for your internal sales reps.
eCustomer Service (Electronic Inside Sales – Email and Online)
o Real-Time Customer Service for Your clients
Online Chat
Email
o Follow-Up Customer Service
Responds to emails
Conducts Research
Replies Back to Your Customer
Please note these are just a few ways our experts can help with your Business Process Outsourcing needs. If you have a project not specifically listed
above please contact us to see if we can help.
80. Q&A:
► You may ask a question at anytime throughout the presentation today. Simply click on the question mark icon located on the floating tool bar on the bottom right side of your screen. Type
your question in the box that appears and click send.
► Questions will be answered in the order they are received.
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SEGMENT 1:
Kosha Dalal
Associate Vice President and Associate General Counsel
Financial Industry Regulatory Authority, Inc.
Kosha.Dalal@finra.org
SEGMENT 1:
Lawrence P. Stadulis
Partner
Stradley Ronon Stevens & Young, LLP
lstadulis@stradley.com
SEGMENT 1:
Merrill R. Steiner
Partner
Stradley Ronon Stevens & Young, LLP
msteiner@stradley.com
SEGMENT 2:
Rogge Dunn
Partner
Clouse Dunn LLP
Rogge@clousedunn.com
Financial Industry
Regulatory Authority, Inc.
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October 24, 2014
Welcome to the Knowledge Group Unlimited Subscription Programs. We have Two Options Available for You:
FREE UNLIMITED: This program is free of charge with no further costs or obligations. It includes:
Unlimited access to over 15,000 pages of course material from all Knowledge Group Webcasts.
Subscribers to this program can download any slides, white papers, or supplemental material covered during all live webcasts.
50% discount for purchase of all Live webcasts and downloaded recordings.
PAID UNLIMITED: Our most comprehensive and cost-effective plan, for a one-time fee:
Access to all LIVE Webcasts (Normally $199 to $349 for each event without a subscription). Including: Bring-a-Friend – Invite a
client or associate outside your firm to attend for FREE. Sign up for as many webcasts as you wish.
Access to all of Recorded/Archived Events & Course Material includes 1,500+ hours of audio material (Normally $299 for each
event without a subscription).
Free CLE/CPE/CE Processing3 (Normally $49 Per Course without a subscription).
Access to over 15,000 pages of course material from Knowledge Group Webcasts.
Ability to invite a guest of your choice to attend any live webcast Free of charge. (Exclusive benefit only available for PAID
UNLIMITED subscribers.)
6 Month Subscription is $299 with No Additional Fees. Other options are available.
Special Offer: Sign up today and add 2 of your colleagues to your plan for free. Check the “Triple Play” box on the sign-up
sheet contained in the link below.
https://gkc.memberclicks.net/index.php?option=com_mc&view=mc&mcid=form_157964
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October 24, 2014
Knowledge Group UNLIMITED PAID Subscription Programs Pricing:
Individual Subscription Fees: (2 Options)
Semi-Annual: $299 one-time fee for a 6 month subscription with unlimited access to all webcasts, recordings, and materials.
Annual: $499 one-time fee for a 12 month unlimited subscription with unlimited access to all webcasts, recordings, and materials.
Group plans are available. See the registration form for details.
Best ways to sign up:
1. Fill out the sign up form attached to the post conference survey email.
2. Sign up online by clicking the link contained in the post conference survey email.
3. Click the link below or the one we just posted in the chat window to the right.
https://gkc.memberclicks.net/index.php?option=com_mc&view=mc&mcid=form_157964
Discounts:
Enroll today and you will be eligible for the “Triple Play” program and 3% off if you pay by credit card. Also we will waive the $49
CLE/CPE processing fee for today’s conference. See the form attached to the post conference survey email for details.
Questions: Send an email to: info@knowledgecongress.org with “Unlimited” in the subject.
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ABOUT THE KNOWLEDGE GROUP, LLC.
The Knowledge Group, LLC is an organization that produces live webcasts which examine regulatory
changes and their impacts across a variety of industries. “We bring together the world's leading
authorities and industry participants through informative two-hour webcasts to study the impact of
changing regulations.”
If you would like to be informed of other upcoming events, please click here.
Disclaimer:
The Knowledge Group, LLC is producing this event for information purposes only. We do not intend to
provide or offer business advice.
The contents of this event are based upon the opinions of our speakers. The Knowledge Group does
not warrant their accuracy and completeness. The statements made by them are based on their
independent opinions and does not necessarily reflect that of The Knowledge Group‘s views.
In no event shall The Knowledge Group be liable to any person or business entity for any special,
direct, indirect, punitive, incidental or consequential damages as a result of any information gathered
from this webcast.
Certain images and/or photos on this page are the copyrighted property of 123RF Limited, their
Contributors or Licensed Partners and are being used with permission under license. These images
and/or photos may not be copied or downloaded without permission from 123RF Limited