What is a finra no action letter?

What is a finra no action letter?

6. The no-action letter addresses foreign equity securities. FINRA notes that member firms should be aware that options on such securities remain subject to the initial and maintenance margin requirements as set forth in FINRA Rule 4210 (f)(2)(E)(iii). 1See Letter from Michael A.

What is institutional suitability certificate?

FINRA Rule 2111 establishes new suitability requirements that broker-dealers must satisfy when recommending transactions or investment strategies involving securities to clients. [i] The Institutional Suitability Certificate is a simple form that institutional clients can sign to make this indication.

How do you get a no-action letter?

You can find a compilation of Staff No Action, Interpretive, and Exemptive Letters from the Divisions of Corporation Finance, Investment Management, and Trading and Markets, and the Office of the Chief Accountant in the “Staff Interpretations” section of our website.

How do I get a no-action letter from the SEC?

No-action letters are available in the following sources:

1. Federal Securities Law Reporter.
2. SEC website – Division of Corporation Finance No-Action, Interpretive and Exemptive Letters.
3. Lexis.
4. Westlaw.

Why didn’t FINRA eliminate its suitability rule?

FINRA has not eliminated its suitability rule because there will be recommendations that will not be subject to Reg BI but that would still warrant suitability protections.

Which of the following communications does not qualify as a complaint under Finra rules?

A telephone call is not a written statement and does not qualify as a complaint under FINRA rules. Private securities transactions are those that are executed outside of the regular scope of an associated person’s employment with a member firm.

Who is a customer under finra?

[A] ‘customer’ under FINRA Rule 12200 is one who, while not a broker or dealer, either (1) purchases a good or service from a FINRA member, or (2) has an account with a FINRA member. The meaning of “customer” is essential to determining whether a potential dispute must be arbitrated.

How long does it take to get a no-action letter?

Consequently, its estimated timelines of “as short as 90 to 120 days” to receive a response to a no-action letter request is actually shorter than its peers.