November 2024

Address the Branch Audit Scheduling Challenge Head-On with RegEd’s Branch Audit Cycle Management

The scheduling of OSJ, branch, and non-branch audits has become more complex over the past year. With the introduction of FINRA’s Remote Inspection Pilot Program and Residential Supervisory Locations, along with state-specific branch and non-branch registration and audit requirements, the complexity in tracking firms’ audit cycles is at an all-time high. For example, OSJ’s must be audited annually (along with branches that supervise non-branch locations), and other branches must be audited every three years. Supervisory offices from a person’s private residence are considered non-branch locations and can be subject to a different cycle, but certain states’ rules override these rules […]

FINRA Modifies Form U4 Adding New Residential Supervisory Location (RSL) Question and Eliminates Quarterly RSL List Reporting Requirement

FINRA recently released a modified version of Form U4, which now includes a method for broker-dealers (BDs) to indicate if their associates’ Offices of Employment that are located in private residences are designated as Residential Supervisory Locations (RSL). (Please note that the Revision Date of Form U4 still reflects May 2009.) RSLs are private residences from which an associated person engages in supervisory activities. FINRA considers RSLs non-branch locations. As such, they do not need to be inspected annually. Instead, they must be inspected on a regular periodic schedule presumed to be at least every three (3) years. In […]

Key Takeaways from the NSCP National Conference: Cybersecurity and AI at the Forefront

RegEd recently attended the NSCP National Conference, where industry leaders gathered to discuss pressing issues and trends impacting the financial services landscape. The NSCP National Conference once again highlighted the pressing topics of cybersecurity and artificial intelligence in the financial services industry. As organizations navigate the complexities of these evolving technologies, key insights emerged from the sessions that warrant attention. Dominance of Cybersecurity and AI Cybersecurity and AI dominated discussions throughout the conference, highlighting their growing importance in today’s financial services landscape. Many firms are in various stages of adopting AI technology, but panelists noted that concrete examples of efficiencies […]

SEC Approves FINRA Proposed Rule 3240 Change (Borrowing From or Lending to Customers)

On September 17, 2024, the SEC approved a FINRA proposed rule change to amend FINRA Rule 3240 (Borrowing From or Lending to Customers). The title for FINRA Rule 3240 will be modified to (Prohibition on Borrowing From or Lending to Customers) in an effort to emphasize the rule is first and foremost a general prohibition against such arrangements. The rule amendments are intended to strengthen the general prohibition against borrowing and lending arrangements between registered persons and customers of the broker-dealer. Among other changes, the amendment narrows some of the existing exceptions to that general prohibition, enhances the requirements […]

Celent Names RegEd a ‘Functional Standout’ in Report on Distribution and Compensation Management Systems in Insurance

The leading advisory firm cites breadth of functionality, robust feature set and large client base as criteria for the designation Celent has named RegEd, and its Enterprise Xchange Producer Management solution, as a “Functional Standout” in the research and advisory firm’s report, Insurance Distribution Management Systems: North American Edition. Functional Standouts “excel in functionality and are likely to have a large installed base. Often more established, these solutions have built out a robust set of features over many years,” the report states. The report highlights a growing trend in the adoption of distribution management systems in response to various market […]