Broker-Dealer Advisory & Counseling

  • Representing a broker-dealer in a FINRA investigation and enforcement action relating to mutual fund sales practices.
  • Reviewing and negotiating clearing and related agreements between client broker-dealers and clearing firms.
  • Reviewing and counseling broker-dealers on electronic record-keeping of transactional and financial records, including WORM compliance.
  • Preparing a FINRA continuing membership application relating to a client’s consolidation of affiliated broker-dealers.
  • Assisting a broker-dealer in a FINRA inquiry regarding fixed income pricing, mark-ups, and best execution.
  • Assisting broker-dealer clients with regulatory examinations and investigations.
  • Advising broker-dealers on various aspects of their electronic trading platforms.
  • Advising a broker-dealer in connection with its electronic blue sheet submissions to regulators.

Looking Forward

The coming year will bring a change in administrations and with it, a change in leadership at the SEC. Expect renewed emphasis on SEC rulemaking and examinations of broker-dealers. Regulation BI became effective in 2020. SEC and FINRA examiners will review firm’ practices and procedures relating to Regulation BI in 2021. Regulators continue to show a keen interest in broker-dealers’ use and supervision of trading algorithms and management of trading risk more broadly. Cybersecurity remains a priority both to broker-dealers in protecting their customers and assets and to regulators concerned about the impact of cyber breaches on investors and the markets. And of course, the SEC and FINRA will continue to scrutinize broker-dealers’ digital assets activities.