{"id":1248,"date":"2013-05-15T10:11:26","date_gmt":"2013-05-15T10:11:26","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/05\/finra_securities_activities_sr"},"modified":"2022-03-10T16:34:24","modified_gmt":"2022-03-10T22:34:24","slug":"finra-securities-activities-sr","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-securities-activities-sr\/","title":{"rendered":"FINRA Securities Activities: SRO Withdraws Proposal to Make Financial Firms Link to BrokerCheck, Gets Request from SIFMA to Modify \u2018Inability to Pay\u2019 Rule, and Says Broker-Dealers Can Give Investors PIP Data About ETPs"},"content":{"rendered":"

\t\t\t\tSRO Says Brokerage Can Institutional Customers PIP Data About ETPs Under Certain Conditions<\/strong><\/p>\n

Financial Industry Regulatory Authority staff have determined that under certain conditions, broker-dealers are permitted to include pre-inception performance information in communications with institutional investors about exchange-traded products, also known as ETPs. Staffers said that FINRA Rule 2210, which governs institutional communications, allows for the use of this data in the way that a fund company is proposing. ALPA Distributors is proposing using the PIP information just in institutional communications, per FINRA Rule 2210 and subject to certain criteria. <\/p>\n

However, in “applying the suitability standards” for recommendations to institutional customers,” the SRO said brokerage firms should be cautious about putting too much “weight” on PIP information, while taking into consideration the correlation between performance of other, similar ETPs managed by the investment adviser, sponsor, or index provider and the PIP data. The staff’s letter was in response to a letter written by the fund company, which sees value in giving institutional investors the information for ETPs analysis. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

SRO Says Brokerage Can Institutional Customers PIP Data About ETPs Under Certain Conditions Financial Industry Regulatory Authority staff have determined that under certain conditions, broker-dealers are permitted to include pre-inception performance information in communications with institutional investors about exchange-traded products, also known as ETPs. Staffers said that FINRA Rule 2210, which governs institutional communications, allows […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3798,4023,3739],"tags":[],"class_list":["post-1248","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-exchange-traded-funds","category-finra"],"yoast_head":"\nFINRA Securities Activities: SRO Withdraws Proposal to Make Financial Firms Link to BrokerCheck, Gets Request from SIFMA to Modify \u2018Inability to Pay\u2019 Rule, and Says Broker-Dealers Can Give Investors PIP Data About ETPs — Investor Lawyers Blog — May 15, 2013<\/title>\n<meta name=\"description\" content=\"SRO Says Brokerage Can Institutional Customers PIP Data About ETPs Under Certain Conditions Financial Industry Regulatory Authority staff have determined — 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