Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 28 APRIL 2011

Proposed FINRA Regulatory Changes Regarding Outsourcing That Require Attention

Loeb & Loeb LLP
Loeb & Loeb LLP
Contributor
Loeb & Loeb LLP

Loeb & Loeb LLP

Loeb & Loeb LLP is a multi-service law firm with more than 400 lawyers focusing on select core...

View firm profile
Explore more from Loeb & Loeb LLP

On March 29, 2011, the Financial Industry Regulatory Authority (FINRA) published for industry comment a proposed rule clarifying the scope of a member firm's obligations and supervisory responsibilities for functions or activities outsourced to a third-party.

United StatesEmployment and HR
Akiba Stern
Akiba Stern
Stephen Cohen
Stephen Cohen

On March 29, 2011, the Financial Industry Regulatory Authority (FINRA) published for industry comment a proposed rule clarifying the scope of a member firm's obligations and supervisory responsibilities for functions or activities outsourced to a third-party. 

The proposed Rule ( FINRA Rule 3190 - Third-Party Service Providers) makes clear that:

  • when a member firm outsources a function or activity related to its business as a regulated broker-dealer to a third-party service provider, it does not relieve the member firm of its obligation to comply with applicable securities laws and regulations, and FINRA and Municipal Securities Rulemaking Board (MSRB) rules;
  • the member firm cannot delegate its responsibilities for, or control over, any outsourced functions or activities;

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Treasury Issues Temporary Regulations On Trump Accounts And Contributions

The U.S. Department of the Treasury and IRS recently issued temporary regulations that provide an immediately effective framework for establishing and administering “Trump Accounts,” including broad automatic enrollment and large-scale contributions funded by governmental and charitable donors. The regulations became effective September 30, 2026, apply to taxable years beginning on or after January 1, 2026, and expire September 30, 2029.
United StatesEmployment and HR
Fennemore Craig, P.C.
Fennemore Craig, P.C.
Article

DOL Announces Enforcement Actions Against Employers In H-1B And PERM Fraud Probe

The Trump Administration has launched an unprecedented enforcement action suspending permanent labor certification processing for eight major employers, linking immigration sponsorship to layoff histories and recruitment practices. This development signals a fundamental shift in how the government evaluates employer access to H-1B and green card programs, with investigations already underway and subpoenas served.
United StatesEmployment and HR
Mayer Brown
Mayer Brown
Article

Allegheny County Council Passes Paid Parental Leave Policy

On Tuesday, October 20, 2026, the Allegheny County Council passed legislation requiring employers with at least 15 workers to provide 12 weeks of paid parental leave, ending months-long debate on the proposal. We previously reported on the initial 18-week proposal in May 2026 (summarized here), the revised proposed legislation (summarized here), and the Allegheny County Board of Health passing the legislation (summarized here). The measure was passed in an 11-4 vote. It will become effective in one year, as County Executive Sara Innamorato signed the bill on, October 22, 2026.
United StatesEmployment and HR
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

California Passes AB-1883 Targeting AI Workplace Surveillance Of Employees’ Emotional State And Neural Data

On Aug. 30, AB-1883 received final legislative approval and now heads to California Governor Gavin Newsom for signature or veto. If enacted, AB-1883 would prohibit employers from using workplace surveillance tools that rely on artificial intelligence (AI) to recognize, infer, or predict an employee’s emotional state, or to collect “neural data.”
United StatesEmployment and HR
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

Maryland’s Ban On Mandatory Employer Meetings: Notice Deadline Looms

Maryland employers must comply with new posting requirements under the Worker Freedom Act, which prohibits penalizing employees who decline attendance at employer-sponsored meetings on religious or political matters. The Maryland Department of Labor has released official notices in English and Spanish that must be displayed prominently in workplaces and provided to new hires starting November 1, 2026.
United StatesEmployment and HR
Jackson Lewis P.C.
Jackson Lewis P.C.
Article

Recent Developments In Mobley v. Workday: California Court Allows Key AI-Hiring Bias Claims To Move Forward

On June 22, 2026, in Mobley v. Workday, Inc., U.S. District Judge Rita Lin largely denied Workday’s motion to dismiss the plaintiffs’ Third Amended Complaint, including rejecting the company’s argument that California’s anti-discrimination laws do not apply to its screening of applicants outside California who are applying for jobs in other states or countries.
United StatesEmployment and HR
Reavis Page Jump LLP
Reavis Page Jump LLP