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- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
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- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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Third Party Service Providers: Supervisory Obligations
March 29, 2011
FINRA published proposed new FINRA Rule 3190, Use of Third-Party Service Providers, regarding a member firm’s obligations and supervisory responsibilities for outsourcing arrangements. Comments are due by 5/13/11. As proposed, Rule 3190 makes clear that:
- outsourcing a function or activity related to its business as a regulated broker-dealer to a 3rd-party service provider doesn't relieve the member firm of its obligation to comply with applicable securities laws, regulations and FINRA or MSRB rules; and
- the firm cannot delegate its responsibilities for, or control over, any outsourced functions or activities.
- the member firm must have supervisory procedures, including due diligence measures, to ensure that its arrangements with 3rd-party service providers are reasonably designed to achieve compliance with applicable securities laws, regulations and FINRA or MSRB rules.
- additional restrictions and obligations are imposed that apply solely to a clearing and carrying member firm and its 3rd-party service provider arrangements.
FINRA Contact. Patricia Albrecht, Office of General Counsel. (202) 728-8026.
For further details, go to: [FINRA RegNote 11-14, March 2011]
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