What is a 4530 filing?

Rule 4530(f) requires firms to promptly file with FINRA copies of specified criminal actions, civil complaints and arbitration claims. Firms may file the required documents either electronically (as a scanned email attachment or scanned and saved on a disk) or in paper form.

What must be reported to FINRA?

FINRA Rule 4530 (Reporting Requirements) requires firms to report to FINRA specified events, such as a settlement against a firm in excess of $25,000, and quarterly statistical and summary information regarding written customer complaints.

What is Rule 3110 A?

FINRA Rule 3110 requires a firm to establish and maintain a system to supervise the activities of its associated persons that is reasonably designed to achieve compliance with the applicable securities laws and regulations and FINRA rules.

What needs to be reported on a U4?

Form U4 Disclosure Obligations

• Outside Business Activities.
• Liens / Judgments / Bankruptcies.
• Address Changes.
• Criminal Disclosures.
• Complaints.
• Periodic Review and Verification.
• Failure to Disclose on Form U4.

What is U4 reportable?

Whether it is reportable on Form U4 is dependent upon whether it is a sales practice violation. Complaints that allege a “sales practice violation” that involve an amount not less than $5,000 in damages are reportable.

What are WSPs?

The WSPs are a “living” document and should provide a road map for the supervisory personnel to follow when they conduct each review. WSPs should not be updated only to reflect changes to rules and regulations, but also when changes are made to the supervisory process.

How long does something stay on your U4?

When you amend your Form U4 once the bankruptcy is more than ten years old, the disclosure will go into archive status and remain in the CRD or IARD system.

Which of the following actions must be reported on Form U4 and is cause for a person to be subject to statutory disqualification?

Form U4 requires applicants to disclose bankruptcies as well as any felony convictions. Although individuals will be disqualified for felony convictions the occurred within the last 10 years, all felonies must be disclosed on Form U4 (even those that occurred more than 10 years ago).

How much of your monthly income should go to debt?

Make sure that no more than 36% of monthly income goes toward debt.

Who does FINRA rules apply to?

FINRA Regulates Broker-Dealers, Capital Acquisition Brokers, and Funding Portals. A Broker Dealer is in the business of buying or selling securities on behalf of its customers or its own account or both. A Capital Acquisition Broker is a Broker Dealer subject to a narrower rule book.

Are FINRA rules law?

Although it has regulatory powers, FINRA is not part of the government. It is a not-for-profit entity and the largest self-regulatory organization (SRO) in the securities industry within the U.S. An SRO is a membership-based organization that creates and enforces rules for members based on federal laws.

Who needs to file a U4?

The Form U4 is the Uniform Application for Securities Industry Registration or Transfer. Representatives of broker-dealers, investment advisers, or issuers of securities must use this form to become registered in the appropriate jurisdictions and/or SROs.

What is a Rule 407 letter?

Definition: The Rule 407 letter is a conduct regulation pertaining to how and when a member of the Financial Industry Regulatory Authority (FINRA) is allowed to hold investments in a personal account.