The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s new consolidated rules governing supervision as well as guidance on email reviews.
Regulatory Notice 14-10 sets out FINRA’s new consolidated rules governing supervision — rules 3110, 3120, 3150 and 3170, which replace NASD Rules 3010, 3012 and 3110(i) and other corresponding NYSE rule provisions.
The new rules become effective on Dec. 1.
The newly adopted FINRA supervisory rules address required supervisory systems, written supervisory procedures, branch-office inspections, testing and other related requirements.
New FINRA Rules 3110 (Supervision) and 3120 (Supervisory Control System) replace NASD Rules 3010 (Supervision), 3012 (Supervisory Control System) and corresponding provisions of the NYSE Rules and Interpretations.
Todd Cipperman, managing principal of Cipperman Compliance Services, says new rules 3110 and 3120 are “big deals” for compliance personnel and are read through carefully “because there’s not a lot of guidance on how to build these compliance programs.”