The Office of Compliance Inspections and Examinations (SEC, FINRA, NYSE) has released an assessment of 19 firms regarding their controls to prevent misuse of material, non-public information.
While not legally binding, this development is important because this is the first comprehensive statement in years regarding a regulatory view of a firms systems and controls for this type of information. Furthermore, this comes in an environment where fines against broker-dealers for failure in this respect have been on the increase. A key development is that broker-dealers now have at least an idea of the standards regulators expect in their inspections.
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