{"id":19905,"date":"2021-08-11T08:50:49","date_gmt":"2021-08-11T13:50:49","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=19905"},"modified":"2021-08-11T08:50:49","modified_gmt":"2021-08-11T13:50:49","slug":"finra-rule-4111-approved","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/","title":{"rendered":"Brokerage Firms With History of Misconduct Will Have To Put Money Aside for Investor Claims"},"content":{"rendered":"

SEC Approves New FINRA Rule That Will Designate Some Brokerage Firms as \u201cRestricted\u201d<\/span><\/h2>\n

The Financial Industry Regulatory Authority (FINRA) rule 4111, which will require certain brokerage firm members with histories of broker misconduct to put aside reserve funds to pay for both future and unpaid investor claims, has now been approved by the Securities and Exchange Commission (SEC).<\/span><\/p>\n

These broker-dealers will be deemed \u201crestricted\u201d based on numeric thresholds to be determined by the self-regulatory organization (SRO) that involve six conditions including disclosure events involving the firm or its registered individuals, firings, and affiliated registered individuals from broker-dealers that already have been expelled.<\/span><\/p>\n

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

SEC Approves New FINRA Rule That Will Designate Some Brokerage Firms as \u201cRestricted\u201d The Financial Industry Regulatory Authority (FINRA) rule 4111, which will require certain brokerage firm members with histories of broker misconduct to put aside reserve funds to pay for both future and unpaid investor claims, has now been approved by the Securities and […]<\/p>\n","protected":false},"author":2,"featured_media":19906,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3774,3739],"tags":[4594,4282,4593],"class_list":["post-19905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broker-dealers","category-finra","tag-broker-mis","tag-brokerage-firm-negligence","tag-finra-rule-4111"],"yoast_head":"\nFINRA Rule 4111: Brokerage Firms Will Have to Put Funds Aside for Claims<\/title>\n<meta name=\"description\" content=\"Brokerage firms with a history of broker misconduct will have to put funds aside for investor claims under FINRA Rule 4111. Learn more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Rule 4111: Brokerage Firms Will Have to Put Funds Aside for Claims\" \/>\n<meta name=\"twitter:description\" content=\"Brokerage firms with a history of broker misconduct will have to put funds aside for investor claims under FINRA Rule 4111. Learn more.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FINRA Rule 4111: Brokerage Firms Will Have to Put Funds Aside for Claims","description":"Brokerage firms with a history of broker misconduct will have to put funds aside for investor claims under FINRA Rule 4111. Learn more.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/","twitter_card":"summary_large_image","twitter_title":"FINRA Rule 4111: Brokerage Firms Will Have to Put Funds Aside for Claims","twitter_description":"Brokerage firms with a history of broker misconduct will have to put funds aside for investor claims under FINRA Rule 4111. Learn more.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Brokerage Firms With History of Misconduct Will Have To Put Money Aside for Investor Claims","datePublished":"2021-08-11T13:50:49+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/"},"wordCount":519,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg","keywords":["broker mis","brokerage firm negligence","FINRA Rule 4111"],"articleSection":["Broker-Dealers","FINRA"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/","url":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/","name":"FINRA Rule 4111: Brokerage Firms Will Have to Put Funds Aside for Claims","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg","datePublished":"2021-08-11T13:50:49+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Brokerage firms with a history of broker misconduct will have to put funds aside for investor claims under FINRA Rule 4111. Learn more.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg","width":640,"height":426,"caption":"Under FINRA Rule 4111, brokerage firms with a history of misconduct will have to reserve funds for investor claims."},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-rule-4111-approved\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Brokerage Firms With History of Misconduct Will Have To Put Money Aside for Investor Claims"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/08\/pexels-ekaterina-bolovtsova-6077326-1.jpg","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-5b3","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/19905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=19905"}],"version-history":[{"count":1,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/19905\/revisions"}],"predecessor-version":[{"id":19907,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/19905\/revisions\/19907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media\/19906"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=19905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=19905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=19905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}