Getting the particulars on paper (or in binary form)
\nWhen your customer places an order, you have to fill out an order ticket. Principals need to approve all new accounts, all trades in accounts, and all advertisements and sales literature; they also handle all complaints (lucky break for you!). The undersigned hereby undertakes to furnish at its own expense to the Securities and Exchange Commission at its principal office in Washington, DC or at any Regional Office of said Commission specified in a demand for copies of books and records made by or on behalf of said Commission, true, correct, complete and current copies of any or all, or any part, of the books and records which the . FINRA is of the view that accepting unsolicited customer orders for the purchase or sale of securities is not considered a clerical or ministerial function. - Rules & Limits, Flextime: Definition, Advantages & Disadvantages, Human Resource Management: Functions & Process, What Is the Age Discrimination Act of 1967? Interpretive Release: Books and Records Requirements for Brokers and at 55,825-826, 55,840. See Exchange Act Release No. See 66 Fed. The answers expressed below are staff opinions only and have not been reviewed or endorsed by FINRA's Board of Governors, nor have they been approved by the SEC. The Adopting Release also notes that the record should reflect the investment objectives for the account and not the individual investment objectives for each joint owner named on the account.16, This release explains that, although a broker/dealer must create a single record for each account, that record may consist of more than one document, such as two or more account applications.17. In late 2017, FINRA pronounced in Regulatory Notice 17-30 that, "Beginning on October 1, 2018, unregistered persons cannot accept an order from a customer under any circumstances. Answer: If an account has more than one owner, the record must include personal information for each owner of the account who is a natural person. Whether this so-called exception to the rule will prove helpful in practice remains to be seen. The specific language from Rule 204-2 (a) (3) reads as follows. A broker/dealer is not required to produce records at an office that is a private residence, provided that: Instead, records pertaining to private residences may either be maintained at some other location within the same state as that office as the broker/dealer chooses, or be promptly produced at an agreed upon location.48. FINRA imposes continuing education requirements ("CE") for all registered persons. Some clerical and ministerial order taking activities address changes, beneficiary changes, and requests for performance clearly do not involve securities transactions. Answer: The term "non-monetary compensation" includes compensation such as sales incentives, gifts, or trips that would be provided to associated persons if certain sales goals were achieved. File a complaint about fraud or unfair practices. at 55,838.22 66 Fed. The record must include the following information: Because firms are already required to keep originals of incoming written complaints, firms have the option to comply with this rule by keeping the original complaint along with a record of the disposition of the complaint, if kept by name of the associated person.35. Series 10 Flashcards | Chegg.com After an order is executed or if it is canceled, the execution price and time of final disposition must be entered on the ticket along with the name of the contra-broker (if any) and the location of the security. Answer: The amendments to Rule 17a-3 added a requirement that broker/dealer firms create a record that lists, by name or title, all personnel at an office who can, without delay, explain the types of records that the firm maintains at that office.43 In its Adopting Release, the Commission stated that the individuals must be able to promptly explain how the firm makes, keeps and titles its records. The purchase and sales blotter c. Securities borrowed and loaned ledger d. Order tickets If you would like to find out more about our services or reserve a date for a mock examination, give us a call. Question 29: Many of the new requirements are geared towards creating records that relate to each office of a broker/dealer and maintaining those records at each office. The Commission, however, states that the broker/dealer is required to make a good faith effort to collect the information and would bear the burden of explaining why the information is not available.32, Firms should also be aware, however, that this provision is limited to the (a)(17) account record requirement and does not apply to any other federal or SRO rules requiring the collection of information.33. We also use third-party cookies that help us analyze and understand how you use this website. Reg. In its Adopting Release, the Commission notes that this mailing may be combined with other mailings.25 The Commission explains that account record information may be printed, for example, on a customer's account statement. PDF NFA Regulatory Requirements