Tag Archives: finra

OBA Change of Procedure

Effective immediately, Thomas P Hyland will be approving all new and updates to Outside Business Activities. Please continue to submit OBA forms through the proper channels to your manager, but keep in mind this new step may result in additional queries from TFS Compliance or Tom himself.

Representatives should also take note that this new approval process may cause delays in approvals. Representatives should use good judgment when it comes to the timeliness of OBA submissions. All Outside Business Activities must be approved prior to engaging in the OBA. Failure to fully comply with this policy will result in immediate and swift disciplinary action.

Please direct any questions regarding this new procedure to myself or your designated Compliance Liaison.

—-Dan

djohnson@tfsweb.com nolivo@tfsweb.com alopez@tfsweb.com

TFS ALTERNATIVE INVESTMENT DISCLOSURE (UPDATED)

This is an update to the initial form and field notification from last Spring. Also, several managers and representatives have asked that the initial bulletin be resent

PS, the old form will still be accepted, but only the revised version is available on TFSWEB.com

—-Dan

TFS Securities, in an effort to serve our clients and remain fully compliant with Federal and State regulations concerning Alternative Investments, has just published a new supplemental disclosure for Alternative Investments. This new disclosure is very important because the additional disclosure seeks to further clarify the client’s investments objectives, and how investing in a particular AI is suitable.

The AI Disclosure must be completed fully and signed by both the investment professional and client(s.) The AI Disclosure is to be included with all initial and supplemental investments into Alternative Investments effective Monday, June 9th regardless of a client’s prior Alternative Investment experience. Paperwork received without the AI Disclosure beginning June 9th will not be considered in good order. Alternative Investments is a major regulatory concern and we appreciate, as always, your full attention and cooperation to help insure our client’s investment choices are the best choices for them.   

I’ve included a link to Forms section of tfsweb.com. The AI Disclosure is found under the Broker Dealer section. Remember our forms are password protected so you must be logged into the TFS website in order to access the form. Please feel free to contact me with questions.

—Dan

http://www.tfsweb.com/securities/forms.aspx

YEAR-END ADVERTISING REQUIREMENTS

It’s that time of year again. Time to get your advertising submitted for annual review. The items that needed to be reviewed are business cards, letterhead, faxes and email signatures.

*Please note* this is annual review. Even if your advertising was approved during the year, you are required to submit it once again in order to fulfill your year-end obligations.

How Do I Submit?

Please photocopy the applicable pieces and submit with an Advertising Approval form, which can be found on the TFS web, to your OSJ or supervising principal. Also, please print a copy of your email signature to send to your OSJ, forwarding an email will not suffice. FINRA requires us to have a copy of your email signature on file with your approved advertising.

Pieces that are not submitted per the guidelines above willl not be considered not in good order. The representative and their manager shall be notified. Sole responsibility for having their advertising approved is that of the representative. Failure to have advertising approved by 12/31/14 could result in a Letter of Caution being generated. We ask for your full cooperation. It will be greatly appreciated if you can assist with getting this task completed as promptly as possible.

Tomorrow's Financial Services, Inc.

Be Vigilant of Fund Transfer Request via e-mail

Hacking an e-mail account is a common thing now days. We need to be alert of Fund Transfers request via e-mail. It can inflict financial damage to the firm and the registered representative, this is something that can be avoided.

Reg. Rep. X (CRD #1234567, Registered Representative, Edison, New Jersey) was fined

$7,500 and suspended from association with any FINRA member in any capacity for 10

business days. The fine shall be due and payable on Reg. Rep. X  return to the securities industry.

The sanctions were based on findings that Reg. Rep. X falsely attested that she had confirmed

a request for a fund transfer with a customer and as a result, caused her member firm’s

books and records to be inaccurate. The findings stated that Reg. Rep. X processed the fund

transfer request that she thought a customer had sent, but the transfer request was

actually sent by an imposter who hacked into the customer’s email. In order to finalize

the transfer of funds, and to accommodate what she believed in good faith to be the

customer’s wishes, Reg. Rep. X provided a false attestation in her firm’s electronic wire transfer

system. In reliance upon Reg. Rep. X’s attestation and the information the imposter provided, the

firm wired the funds from the customer’s account to the account the imposter specified.

The imposter requested a second transfer and at that point, Reg. Rep. X and the adviser she

assisted became suspicious. Reg. Rep. X and the adviser brought the incident to a branch manager

after they determined the signature on the letter of authorization (LOA) did not match the

customer’s signature on file. As a result, the firm investigated the incident and terminated

Reg. Rep. X based on her false attestation. Reg. Rep. X initially represented that she mistakenly checked

the box attesting that she had spoken with the customer and later volunteered that she did

so knowingly.

 

New TFS Securities Alternative Investments Disclosure

TFS Securities, in an effort to serve our clients and remain fully compliant with Federal and State regulations concerning Alternative Investments, has just published a new supplemental disclosure for Alternative Investments. This new disclosure is very important because the additional disclosure seeks to further clarify the client’s investments objectives, and how investing in a particular AI is suitable.

The AI Disclosure must be completed fully and signed by both the investment professional and client(s.) The AI Disclosure is to be included with all initial and supplemental investments into Alternative Investments effective Monday, June 9th regardless of a client’s prior Alternative Investment experience. Paperwork received without the AI Disclosure beginning June 9th will not be considered in good order. Alternative Investments is a major regulatory concern and we appreciate, as always, your full attention and cooperation to help insure our client’s investment choices are the best choices for them.   

I’ve included a link to Forms section of tfsweb.com. The AI Disclosure is found under the Broker Dealer section. Remember our forms are password protected so you must be logged into the TFS website in order to access the form. Please feel free to contact me with questions.

—Dan

http://www.tfsweb.com/securities/forms.aspx

Tomorrow's Financial Services, Inc.

Firms Responsibilities When Providing Customers with Consolidated Financial Reports

FINRA Reminds Firms of Responsibilities When Providing Customers with Consolidated Financial Account Reports

Executive Summary

The practice of providing customers with consolidated financial account reporting has become increasingly common in the financial services industry. In many cases, these reports offer a single document that combines information regarding most or all of the customer’s financial holdings, regardless of where those assets are held. Firms are reminded that these reports represent communications with the public by the firm; the dissemination of these reports must comply with all applicable FINRA rules as well as the federal securities laws.

As investor demand for this service has grown and as increasingly sophisticated software and data service providers have become available, firms have developed differing practices for generating these communications. If not rigorously supervised, this activity can raise a number of regulatory concerns, including the potential for communicating inaccurate, confusing or misleading information to customers, lapses in supervisory controls, and the use of these reports for fraudulent or unethical purposes.

This Notice reminds firms of their responsibilities to ensure that they comply with all applicable rules when engaging in this activity, and highlights a number of sound practices. Firms are strongly encouraged to review the overall adequacy and effectiveness of their current policies and procedures relating to their consolidated reporting. Any firm that cannot properly supervise the dissemination of consolidated reports by its registered representatives must prohibit the dissemination of those reports and take the necessary steps to ensure that its registered representatives comply with this prohibition.

General questions about this Notice should be directed to:

  • Steve Kasprzak, Associate Director & Principal Counsel, Sales Practice Policy, Member Regulation, at (646) 315-8603; or
  • Bill Hayden, Emerging Regulatory Issues, at (202) 728-8860.

For questions about communications with the public, contact Amy Sochard, Advertising Regulation, at (240) 386-4508.

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p121253.pdf

Tomorrow's Financial Services, Inc.

FINRA Reminds Firms of Their Responsibilities Concerning IRA Rollovers

Executive Summary

FINRA is issuing this Notice to remind firms of their responsibilities when (1) recommending a rollover or transfer of assets in an employer-sponsored retirement plan to an Individual Retirement Account (IRA) or (2) marketing IRAs and associated services. Reviewing firm practices in this area will be an examination priority for FINRA in 2014.

Questions concerning this Notice should be directed to:

  • Thomas M. Selman, Executive Vice President, Regulatory Policy, at (202) 728-6977 or by email; or
  • Angela C. Goelzer, Vice President, at (202) 728-8120 or by email.

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p418695.pdf

A reminder concerning TFS Advisory Services

The end of the year is rapidly approaching and so is the exciting changeover from Innovative Market Trends to TFS Advisory Services. As a part of this changeover all representatives, managers and OSJ principals need to remember a few important items.

1) All stationary (business cards, letterhead, fax cover sheets, notepads, etc.) need to reflect TFS Advisory Services.

2) All websites and signage need to reflect this change as well.

3) Many reps utilize various services to generate client newsletters. These venders must contacted to update the change as well.

4) As of December 31, all items in your office or associated with your business must reflect TFS Advisory Services, and these changes must be submitted to your manager then Compliance with an Advertising Approval Form. Absolutely nothing with IMT will be approved and there are no exceptions.

Here is the TFS Advisory Services disclosure for your reference:

Investment Advisory Services Offered Through TFS Advisory Services, a Division of TFS Securities, Inc.

 

Tomorrow's Financial Services, Inc.

FINRA Rule 9217 to Include add. Rule violations Eligible for Disposition Under Minor Rule Violation

SEC Approves Amendments to FINRA Rule 9217 to Include Additional Rule Violations Eligible for Disposition under FINRA’s Minor Rule Violation Plan

Effective Date: September 26, 2013

Executive Summary

The Securities and Exchange Commission (SEC) approved amendments to FINRA Rule 9217 to include additional rules for disposition pursuant to FINRA’s Minor Rule Violation Plan (MRVP). The additional rules are set forth in Attachment A. The amendment became effective September 26, 2013.

The text of the amended rules is available at www.finra.org/notices/13-32.

Questions concerning this Notice should be directed to Philip Shaikun, Associate Vice President and Associate General Counsel, Office of General Counsel, at (202) 728-8451.

http://www.finra.org/Industry/Regulation/Notices/2013/P360941

 

Tomorrow's Financial Services, Inc.

Common Findings and Effective Practices for Complying with its Suitability Rule

FINRA Highlights Examination Approaches, Common Findings and Effective Practices for Complying With its Suitability Rule

Executive Summary

This Notice provides observations from recent FINRA examinations and highlights firms’ experiences with FINRA Rule 2111 (Suitability), which became effective on July 9, 2012. It does not create new or alter the existing questions and answers, guidance or interpretations of FINRA Rule 2111 contained in prior Notices.

The effective practices highlighted in this Notice are provided to help firms enhance compliance and supervision under the suitability rule. Adopting practices discussed in this Notice will not ensure rule compliance or result in a safe harbor, but we believe they are positive steps in building a strong compliance environment.

Questions regarding this Notice may be directed to

  • Daniel M. Sibears, Executive Vice President, Regulatory Operations/Shared Services at (202) 728-6911; or
  • Michael Rufino, Senior Vice President and Acting Head of Regulatory Operations/Sales Practice, at (212) 858-4487.

http://www.finra.org/Industry/Regulation/Notices/2013/P351221