FINRA (Financial Industry Regulatory Authority) penny stock rules are part of the agency’s overall authority over the stock market. Low-priced securities are often known as penny stocks. Penny stocks can be extremely volatile and hard to predict. This volatility makes them a prime target for scams.
Super Account Administrators have become essential contributors to cybersecurity at FINRA regulated firms.
Digital compliance is high on the agenda for legal and regulatory stakeholders. Authorities have begun to outline new regulations to address the increase in fintech solutions in the market and in apps that make it easier to trade frequently. You may think your business is completely compliant today - but the ground may yet shift under your feet.
“Payment for order flow,” or PFOF, refers to compensation a broker receives from a wholesale market maker in return for routing trades to that market maker. This approach to compensation is at the heart of many digital broker-dealers’ business models. It allows them to trade profitably against client orders, while their retail clients theoretically benefit from lower or no commissions.
FINRA Rules 3110 (a) and (b) require that any brokerage firm that operates under Financial Industry Regulatory Authority have protocols to supervise all employees, from the executives to the newest employee. The brokerage must also comply with SEC Rule 17a-4(f) to properly store electronic records.
InnReg compliance experts highlighted these seven takeaways.
Check if your brokerage meets all the requirements?
