SEC and FINRA Announce Plan to Help Broker-Dealer CCO’s with Compliance Controls

The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have introduced an initiative that will assist broker-dealer chief compliance officers in maintaining compliance controls that work, creating effective communications about compliance risks, and implementing solid compliance programs at brokerage firms.

Regional and national seminars will be designed to focus on increased compliance practices at brokerage firms to increase investor protection. FINRA and SEC said that this new initiative is similar to the SEC’s current CCOutreach Program for investment company chief compliance officers and investment advisers.

A national compliance seminar is tentatively scheduled for March 2008 at the SEC headquarters in Washington D.C. Regional seminars will be held in cities across the United States.

Potential topics include sales practices, debt securities issues, new products, CCOs and compliance programs within the organization, The CCO’s Role in Businesses that are constantly changing, business continuity / pandemic planning, trading issues, conflicts of interest, protecting customer data and non-public information, annual compliance report, regulatory compliance examinations, and Reg NMS.

The plan is sponsored by FINRA, the Division of Market Regulation, and the SEC’s Office of Compliance Inspections and Examinations.

SEC Chairman Christopher called the initiative an opportunity for regulators and broker-dealers to learn from each other the best ways to ensure that security laws are abided by.

Even when there are investor protections in place, there are still incidents that occur where an investor loses money because of broker misconduct. If you are a victim of investor fraud, you should speak with an experienced stockbroker fraud attorney who can help you.

Contact Shepherd Smith and Edwards today to schedule your free case evaluation.