What is brokerage compliance?
Securities compliance is the adherence to the rules and regulations related to trading securities. The regulatory organizations who create and enforce these laws include: U.S. Securities and Exchange Commission (SEC) Financial Industry Regulatory Authority (FINRA)
What is SEC compliance?
SEC compliance is adherence to the rules and regulations that the Securities and Exchange Commission makes and enforces.
What are the FINRA compliance requirements?
FINRA compliance requirements stipulate that data must be retained for certain periods of time on non-rewritable, non-erasable media (also known as Write Once, Read Many media, or WORM), and that data must be auditable, discoverable, and protected from loss and theft.
What is FINRA compliance?
FINRA Compliance Made Simple To recap, FINRA is a self-regulatory body that has created a massive catalog of rules and regulations to protect buyers and sellers. At its essence, FINRA compels member firms to have their broker-dealers act honestly and transparently and ensure that financial data is always secure.
What are broker/dealer services?
Broker-dealers fulfill several important functions in the financial industry. These include providing investment advice to customers, supplying liquidity through market-making activities, facilitating trading activities, publishing investment research, and raising capital for companies.
Why is SEC compliance important?
A compliance program that focuses on investor protection also protects your business. This is true because the potential costs of serious compliance failures and violations of the federal securities laws can be much higher than any sanctions imposed by regulators.
Who is required to file with SEC?
The Securities and Exchange Commission (SEC) requires public companies, certain company insiders, and broker-dealers to file periodic financial statements and other disclosures. Finance professionals and investors rely on SEC filings to make informed decisions when evaluating whether to invest in a company.
What is the difference between SEC and FINRA?
FINRA is a not-for-profit entity that is not part of the government. The Securities and Exchange Commission (SEC) is a government organization that is meant to protect investors and ensure the integrity of the securities market. The SEC oversees FINRA and acts as the first level of appeal for actions brought by FINRA.
How do you comply with FINRA?
FINRA requires that all financial brokers must be licensed and registered, passing their qualification exams and adequately meeting their continuing education requirements.
Who regulates brokers?
FINRA
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.