Effective on February 24, 2026, the Securities and Exchange Commission (SEC) issued Release No. 34‑104881, an Amended and Restated Order under Section 17(h)(4) of the Securities Exchange Act of 1934. This order updates and expands the exemption criteria that allow certain broker‑dealers to avoid the more burdensome requirements of Rules 17h‑1T and 17h‑2T, which relate to the SEC’s broker‑dealer risk assessment program.

These rules were originally designed to ensure that the financial risks stemming from broker‑dealer affiliates could not compromise the financial stability of the broker‑dealer itself. The updated order reflects the SEC’s ongoing efforts to modernize regulatory thre...

On November 4, 2022, the amended Rule 206(4)-1 (the “Marketing Rule”) under the Investment Advisers Act of 1940 (“Advisers Act”) goes into effect. The new Marketing Rule amends and merges two previous rules, the “advertising rule” (the former Rule 206(4)-1) and the “solicitation rule” (the former Rule 206(4)-3), into one overarching rule that regulates the marketing of investment advisers. In addition, Rule 204(2) “Books and Records” as well as Form ADV have been amended to address the changes. This memorandum will specifically address the impact of the New Marketing Rule on broker dealers marketing investments to potential investor...

FINRA recognizes the current economic turbulence the spread of COVID-19 has caused small firms, in particular. With that in mind, FINRA is providing temporary relief for small firms with respect to 2020 Gross Income Statements and Personal Assessments (Annual Assessments).

Generally, payment of Annual Assessments is due in full within 30 days of receipt or in four quarterly installments. In 2020, FINRA is permitting small firms—identified under the FINRA By-Laws as having no more than 150 registered persons—to treat 2020 Annual Assessments as billed as of August 1, 2020, rather than as due upon receipt in April. Further, small firms that choose to do so will be allowed to pay 50 p...