Understanding the regulations and guidelines surrounding outside business activities (OBAs) is crucial for registered representatives in the financial industry. The Financial Industry Regulatory Authority (FINRA) has established specific rules by which it claims to ensure transparency and protect the interests of both clients and firms. In this blog, we will provide you with important information on what constitutes an OBA, how to accurately report it, what actions your firm may take if an activity is not reported, and how you can protect yourself from enforcement actions.
Georgia Advisor Restores Public Record With Termination Expungement
A FINRA-registered representative in Georgia had a termination disclosure marring her otherwise-perfect, 16-year record of performance in the financial services industry. In hopes of achieving expungement of the mark, she hired AdvisorLaw to try her luck in the FINRA Dispute Resolution forum.
What events will trigger a FINRA inquiry?
The longer your career as a financial advisor, the higher your chances of being hit with the dreaded FINRA inquiry. That’s why it’s important to know exactly what will trigger an investigation in the first place. This week, on Ask An AdvisorLaw Expert, we discuss what can trigger an inquiry and what advisors should do when faced with one. It …
FINRA’s Rule 4111 & New “Restricted” Label On BrokerCheck
The Financial Industry Regulatory Authority (FINRA) announced that effective June 1st, 2023, firms with a history of misconduct will be labeled with a “restricted” designation on BrokerCheck. This marker will appear on both a firm’s BrokerCheck summary and in detailed BrokerCheck reports.
Houston Advisor Removes 2021 Termination Disclosure
As he approached 30 years of experience in the financial services industry, this Houston-based advisor was blindsided by termination and a corresponding disclosure with allegations in 2021. Seeking to restore his perfect public BrokerCheck and CRD records, the advisor hired AdvisorLaw to try to have the disclosure expunged through FINRA Arbitration.
The SEC’s Recent Ruling For High-Risk Firms
The Securities and Exchange Commission (SEC) recently approved FINRA’s new rule that allows it to display an alert on its BrokerCheck tool when a brokerage firm is flagged as “restricted.” This “restricted” designation will be displayed prominently on the firm’s BrokerCheck page and will include a link to a page that explains why the firm is considered high-risk by FINRA. This “scarlet-letter” punishment serves as a warning to potential clients that the firm, or its individual advisors, may have a history of engaging in misconduct or other high-risk activities.