Protection of financial and personal customer information is a key responsibility and obligation of FINRA member firms. Under the SEC’s Regulation S-P, firms are required to have policies and procedures addressing the protection of customer information and records.
Table of Contents
Who is subject to Regulation SP?
[1] Reg S-P applies to all broker-dealers, investment advisers, and investment companies operating within U.S. securities markets, regardless of whether they have satisfied their registration obligation.
Does the SEC enforce rules?
We protect investors by vigorously enforcing the federal securities laws to hold wrongdoers accountable and deter future misconduct.
What are SEC restricted entities?
Restricted Entities means any chain restaurant company with franchised and/or company-owned outlets, and Affiliates (other than Funds) of any such company.
How strict is the SEC?
SEC regulations are very demanding, strict and thorough. It can be daunting to comply with all of the banned activities, financial statement requirements, mandated actions, new regulations and rules, procedural and technical filing conditions, published guidance and unofficial interpretations.
What is Regulation M?
The SEC’s Regulation M is designed to prevent manipulation by individuals with an interest in the outcome of an offering, and prohibits activities and conduct that could artificially influence the market for an offered security.
What is regulation p?
Regulation P governs the treatment of nonpublic personal information about consumers by the financial institutions for which the Board has primary supervisory authority.
What is a Rule 147 offering?
Securities purchased in an offering under Rule 147 limit resales to persons residing within the state of the offering for a period of six months from the date of the sale by the issuer to the purchaser.
Is Reg SP the same as GLBA?
Regulation S-P (17 C.F.R. § 248.1 et seq.), adopted by the SEC pursuant to the Gramm-Leach-Bliley Act (the “GLBA”), implements the GLBA’s requirements with respect to privacy of consumer personal information for registered investment advisers, investment companies, and broker-dealers (each, a “financial institution”).
Does Regulation SP apply to private funds?
The Securities Exchange Commission adopted Regulation S-P applicable to registered investment advisers. The Federal Trade Commission adopted Regulation Part 313 applicable to financial institutions that are not subject to the jurisdiction of a specific agency (thus, picking up private funds).
Does Regulation SP apply to institutional investors?
A: Yes. Regulation S-P defines a customer relationship as a continuing relationship between a consumer and a financial institution.
What are the six most common violations reported by the Securities and Exchange Commission?
Among the violations the commission searches out are these: (1) unregistered sale of securities subject to the registration requirement of the Securities Act of 1933, (2) fraudulent acts and practices, (3) manipulation of market prices, (4) carrying out of a securities business while insolvent, (5) misappropriation of …
What power does the SEC have?
The SEC is a government organization that sets rules and regulations regarding the issuance, marketing, and trading of securities. The SEC is also charged with protecting investors.
What are SEC violations?
The SEC enforces federal securities laws, so it’s interested in anything that violates those laws. That could include: Fraudulent schemes, such as Ponzi or pyramid schemes. Theft of money or securities.
Which of the following services are we permitted to provide to an SEC restricted entity?
Broker-dealer, investment advisor, or investment banking services. Legal services.
Which non-audit services are prohibited from providing to an SEC restricted entity?
Specific Prohibited Non-audit Services Financial information systems design and implementation. Appraisal or valuation services, fairness opinions, or contribution-in-kind reports. Actuarial services. Internal audit outsourcing services.
Which of the following are restricted entities?
All mutual funds are Restricted Entities. 2. All public companies are Restricted Entities.
Is it insider trading if you overhear?
If the neighbor then goes ahead and makes a trade based on what was overheard, that would be a violation of the law even though the information was just “innocently” overheard: the neighbor becomes an insider with a fiduciary duty and obligation to confidentiality the moment they comes into possession of the nonpublic …
Can you go to jail for insider trading?
Criminal Penalties. The maximum prison sentence for an insider trading violation is now 20 years. The maximum criminal fine for individuals is now $5,000,000, and the maximum fine for non-natural persons (such as an entity whose securities are publicly traded) is now $25,000,000. Civil Sanctions.
Can you get away with insider trading?
Contrary to common belief, insider trading is not always illegal. Insider trading is legal when corporate insiders—such as a company’s directors, officers, and employees—buy or sell shares in their company in accordance with securities laws and regulations.
Who does Regulation M apply to?
Regulation M provides that an underwriter or other distribution participant that is also an affiliate of the issuer or selling securityholder will be subject to Rule 101 rather than Rule 102, but an affiliated distribution participant (even one acting as an underwriter) cannot rely on the exception for actively-traded …
Which of the following is a prohibited activity under Regulation M?
Regulation M prohibits (1) bidding for covered securities, (2) purchasing covered securities and (3) attempting to induce any person to bid for or purchase a covered security.
Who has jurisdiction over Reg M?
Although the Bureau has the authority to issue rules to implement the CLA for most entities, the Board retains authority to issue rules under the CLA for certain motor vehicle dealers covered by section 1029(a) of the Dodd-Frank Act, and the Board’s Regulation M continues to apply to those entities.
What is Regulation G?
Regulation G governs the disclosure and reporting of agreements related to the federal Community Reinvestment Act (CRA). That 1977 law was aimed at reducing discriminatory lending practices that denied loans to prospective homeowners and small business owners in low- and moderate-income neighborhoods.
What is Regulation n?
Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any mortgage credit product. An action under this part may be brought by a federal regulator or any state attorney general or other officer authorized by the state.