FINRA’s Board of Governors met via zoom on December 9, 2020. The Board approved three proposed rulemaking amendments and also approved FINRA’s 2021 proposed budget. One of the proposed amendments that was approved was to further enhance the Continuing Education Program (“CE”). The amendment applies to FINRA Rules 1210 and 1240, strengthening FINRA’s CE program.

The Securities and Exchange Commission (“SEC”) filed a complaint in the U.S. District Court for the Northern District of New York in Buffalo against Cygnus Capital Management and the estate of Richard Ventrilla (“Ventrilla”) alleging that they had defrauded 22 investors of $989,000.

FINRA Rule 3220 sets strict limits on the gifts and gratuities that financial professionals can give or receive. Gifts and gratuities are subject to a $100 per year, per person limitation. This includes whether or not there was a pre-existing relationship between the associated person and the recipient and whether the associated person paid for the gift out of their own personal bank account without reimbursement from the firm.

COVID-19 has impacted the world’s operations tremendously. From volatile markets, to business loan grief, and overwhelming cyber threats, member firms have been forced to a new work environment, remote. Though the world entirely has been forced to a pause, FINRA has notified member firms they have used this time of uncertainty to crack down rule and regulation enforcement to protect investors.

Abra, a California-based trading app, and related firm Plutus Technologies Philippines Corp (“Plutus”), were charged by the Securities and Exchange Commission (SEC) on July 13, 2020. Abra and the related firm were charged for offering trades to non-registered investors and for failing to record all trades on a registered national exchange.

As Summer has turned to Fall and you are getting around to that “To Do” list that may have hit the back burner all summer, it’s time to focus on your year-end compliance priorities. Plenty of people use a pen and paper, calendar, or online diary without any issues. And yet, a new to do list seems to emerge daily with important items being left behind.