“Institutional account” means the account of a bank, savings and loan association, insurance company, registered investment company, registered investment adviser or any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million.
Secondly, what is an institutional customer for purposes of Finra suitability rule?
For purposes of this interpretation, an institutional customer shall be any entity other than a natural person.
Moreover, who must review institutional communication?
All correspondence is subject to the supervision and review requirements of FINRA Rule 3110(b)(4), which provides, in part, that each member must establish procedures for the review and endorsement by a registered principal in writing, on an internal record, of all transactions and for the review by a registered …
What is the finra rule?
Understanding FINRA
3 FINRA regulates the trading of equities, corporate bonds, securities futures, and options. The Financial Industry Regulatory Authority (FINRA) has the power to fine or ban brokers and brokerage firms that violate its rules. 1? FINRA has 19 offices across the United States and over 3,000 employees.
What is the Finra Rule 2330?
Rule 2330 requires firms to establish and maintain written supervisory procedures reasonably designed to comply with the rule’s standards. … Firms also must create training programs for registered representatives who sell deferred variable annuities and for registered principals who review these transactions.
What is fair dealing finra?
Fair dealing with customers requires that charges be reasonable and disclosed up front in a manner that will allow investors to make informed investment decisions. Furthermore, under FINRA Rule 2122, any miscellaneous charges must be reasonable and related to the services performed.
What are the main suitability obligations?
2 FINRA Rule 2111 (Suitability) establishes three primary obligations for firms and their associated persons: (1) reasonable-basis suitability, (2) customer-specific suitability and (3) quantitative suitability.
What is the suitability rule?
A stated or implied requirement by a regulatory body that a broker or investment adviser must reasonably believe that a certain investment decision will benefit a client before making a recommendation to him/her.
Who reports to finra?
(b) Each member shall promptly report to FINRA, but in any event not later than 30 calendar days, after the member has concluded or reasonably should have concluded that an associated person of the member or the member itself has violated any securities-, insurance-, commodities-, financial- or investment-related laws, …
Who does finra Rule 3210 apply to?
The purpose of Rule 3210 is to govern accounts opened or established by advisors and brokers at firms other than the member firm where they are employed or registered. Accounts that financial advisors and brokers have with their employers are easily monitored.
What is an outside business activity finra?
Examples of reportable outside business activities could include providing accounting or consulting services, working for a start-up or sitting on a board of directors, acting as a real estate broker, and serving on the board of a religious or civic organization, among other things.
Does institutional communication need to be filed with finra?
Only retail communications are subject to the filing requirements. Correspondence and institutional communications are not subject to any filing requirement with FINRA.
What is an institutional communication?
Institutional communication can be defined as the type of communication carried out in an organized way by an institution and its representatives, and is aimed at people and social groups that develop its activity.
Does finra approve retail communications?
(1) Retail Communications
(A) An appropriately qualified registered principal of the member must approve each retail communication before the earlier of its use or filing with FINRA’s Advertising Regulation Department (“Department”).