FINRA Releases Restricted Agency Compliance Software


What You Must Know

  • The software helps BDs decide whether or not they meet the preliminary standards to be designated as a restricted agency.
  • Restricted corporations could also be required to deposit money right into a segregated account to cowl potential future regulatory fines.

The Monetary Business Regulatory Authority has launched a Rule 4111 compliance software to assist broker-dealers decide whether or not they meet the preliminary standards to be designated as a restricted agency.

Rule 4111 (Restricted Agency Obligations) units further necessities for broker-dealers with a big historical past of misconduct, together with corporations with a excessive focus of high-risk brokers.

Restricted corporations could also be required to deposit money right into a segregated account to cowl potential future regulatory fines.

The software, which resides within the FINRA Gateway, gives reviews of:

  • the annual calculation of whether or not the member agency met the preliminary standards for identification, together with its preliminary identification metrics, as of the analysis date for a given yr; and
  • interim calculations as of an analysis date for that given yr.

The interim calculations are generated for informational functions solely; whether or not a member agency will meet the preliminary standards for Identification as of the analysis date within the annual calculation may change primarily based on subsequent occasions.

Annually’s report of the annual calculation shall be issued shortly after the Rule 4111 annual calculation is carried out for that yr, FINRA explains.

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