Broker-dealers had been preparing for the sunset of the prior time-based relief that the staff of the Securities and Exchange Commission provided in respect of compliance with Rule 15c2-11 as to certain fixed income securities, which expires on January 4, 2025. The SEC had separately provided exemptive relief with respect to Rule 144A securities; however
FINRA Rules Applicable to Securities Offerings
November 5, 2024
8:30 a.m. – 9:30 a.m. EDT
Mayer Brown LLP 14th Floor, 1221 Avenue of the Americas, New York, NY 10020
Join us for this in-person CLE on November 5, 2024.
There are a number of FINRA rules to take into account from the perspective of a placement agent or underwriter when undertaking
FINRA Highlights Increasing Cybersecurity Risks at Third-Party Providers
The Cyber and Analytics Unit within the Member Supervision program of the Financial Industry Regulatory Authority, Inc. (“FINRA”) recently published a cybersecurity advisory regarding increasing cybersecurity risks at third-party providers (the “Cybersecurity Advisory”). The Cybersecurity Advisory highlights third-party risks to FINRA member firms and effective practices to mitigate such risks.
FINRA’s advisory comes at a
FINRA Update on Crypto Asset Activities
On August 14, 2024, FINRA published an update (the “Update”) on its ongoing efforts to engage with its members related to crypto asset activities. The Update describes “crypto assets” as assets that are issued or transferred using distributed ledger or blockchain technology. They include, but are not limited to, so-called virtual currencies, coins, and tokens.
SEC Settles Reg BI Case Against California Broker-Dealer
On July 31, 2024, the Securities and Exchange Commission (“SEC”) announced that it agreed to settle allegations that a California-based broker-dealer sold in excess of $13 million in “L bonds,” a speculative, unrated debt security, to retail customers with lower risk profiles. The settlement of this case is notable because it was the SEC’s first
FINRA Reminds Members of Regulatory Obligations When Using Generative Artificial Intelligence (AI) and Large Language Models
On June 27, 2024, the Financial Industry Regulatory Authority, Inc. (“FINRA”) issued Regulatory Notice 24-09 (the “Notice”) reminding member firms that FINRA’s rules and the securities laws apply to the use of artificial intelligence (“AI”), including large language models and other generative AI (“Gen AI”) technology, just as they apply when member firms use any
Frequently Asked Questions for FINRA Member Firms on AI Use in Public Communications
Several days ago, FINRA released guidance updating its Frequently Asked Questions relating to Rule 2210 on Advertising and Public Communications to address Artificial Intelligence. This follows after FINRA has consistently been noting that the use of AI and AI tools should be addressed by member firms in their policies and procedures and may implicate their
A ‘Byte-Sized’ Breakfast Discussion: Cybersecurity Risk Management Strategies and Regulator Expectations
- Delve into emerging cybersecurity threats and defenses, including API security and vendor risk;
- Discuss the current regulatory framework and proposed SEC cybersecurity
MB Microtalk: FINRA Notice on Private Placements – Part 3
In this MB Microtalk video, Mayer Brown’s Tim Nagy discusses FINRA Regulatory Notice 23-08, which provides supplemental and updated guidance on private placements.
Read our related client alert.
This microtalk is a part of a series on the FINRA Notice on Private Placements. Parts 1, 2 and 4 are available on our MB Microtalk
MB Microtalk: FINRA Notice on Private Placements – Part 2
In this MB Microtalk video, Mayer Brown’s Tim Nagy discusses FINRA Regulatory Notice 23-08, which provides supplemental and updated guidance on private placements.
Read our related client alert.
This microtalk is a part of a series on the FINRA Notice on Private Placements. Parts 1, 3 and 4 are available on our MB Microtalk