Your WSPs Are Outdated. Here’s How to Fix Them Fast The updated FINRA Rule 3220 went into effect March 30, 2026 and if your Written Supervisory Procedures (WSPs) still reflect the old $100 gift limit, your firm is already exposed. This is not a minor revision. This is a full-scale compliance shift that introduces new…
The long-standing FINRA Rule 3220 (Gifts Rule) has officially been updated, marking one of the most significant regulatory changes for broker-dealers in over three decades. Approved by the SEC on February 12, 2026, and effective March 30, 2026, these amendments introduce a new $300 gift limit, expanded supervisory requirements, and a modernized compliance framework. …
FINRA’s proposed rule change SR-FINRA-2026-001 is one of the most consequential updates to outside business activity (OBA) and private securities transaction (PST) regulation in years. If adopted, it would consolidate FINRA Rules 3270 (OBAs) and 3280 (PSTs) into a new Rule 3290, shifting the compliance burden away from low-risk outside activities and toward the activities…
If you work in securities regulation, broker-dealer compliance, investment banking, or capital markets, FINRA’s latest regulatory push should be on your radar. In January 2026, the Financial Industry Regulatory Authority (FINRA) filed a proposed rule change with the SEC to amend two key Capital Markets rules: FINRA Rule 5110 (the Corporate Financing Rule, governing underwriting…
In October 2025, U.S. securities regulators significantly intensified their focus on small-capitalization (small-cap) offerings, low-priced securities, and omnibus account activity, signaling elevated enforcement risk for broker-dealers and other financial institutions. FINRA’s targeted examination letter, issued in October 2025, reviews firm practices related to public and private offerings of exchange-listed issuers, particularly those with foreign operations,…
The SEC’s Fiscal Year 2026 Examination Priorities, released in November 2025, signal a continued shift toward risk-based, effectiveness-driven regulatory oversight. Examiners are focused on how compliance programs function in practice—particularly across complex products, AML and financial crime, books and records, and compliance training culture. For broker-dealers, investment advisers, and registered investment companies, aligning with these…
Posted on November 30, 2025 Written by: Maria Minguez, Sr.Consultant and Michael Dorsey, Sr. Consultant Good morning, fellow professionals in the independent financial services industry. As registered broker-dealers and representatives navigating an ever-evolving regulatory landscape, staying ahead of compliance updates is crucial for protecting your business and optimizing operations. Today, we’re excited to share a…
In the evolving landscape of financial regulation, broker-dealers face mounting pressure to fortify their anti-money laundering (AML) frameworks, particularly in trade surveillance. FINRA Regulatory Notice 21-03, issued on February 10, 2021, underscores the heightened risks associated with low-priced securities—often referred to as microcap or penny stocks—and the need for vigilant monitoring to detect potential fraud…
FINRA Notice 21-03 highlights a critical intersection between anti-money laundering (AML) compliance and market integrity, particularly for firms active in underwriting, distributing, and trading low-priced or OTC securities. These markets, often characterized by limited transparency and heightened volatility, present increased risk of fraud, manipulation, and regulatory exposure. To remain compliant, firms must integrate AML-driven surveillance…
In light of the Financial Industry Regulatory Authority’s (FINRA) ongoing targeted examination of practices surrounding public and private offerings of small-capitalization exchange-listed issuers with business operations in foreign jurisdictions—such as China—financial institutions must immediately prioritize a comprehensive self-assessment of their current public and private offering practices. This review, detailed in FINRA’s October 2025 guidance, focuses…
