Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 30 JUNE 2014

Conflict Of Interest Best Practices

Fox Rothschild LLP
Fox Rothschild LLP
Contributor
Explore more from Fox Rothschild LLP

FINRA published a report on best practices used by broker-dealers to manage conflicts of interest.

United StatesFinance and Banking
Ernest Badway
Ernest Badway
Author LinkedIn connections

FINRA published a report on best practices used by broker-dealers to manage conflicts of interest.  See http://www.finra.org/web/groups/industry/@ip/@reg/@guide/documents/industry/p359971.pd?utm_source=MM&utm_medium=email&utm_campaign=NewsRelease_Conflict_101413_FINAL.

The report was based on responses to a sweep letter sent out by FINRA in July 2012, as well as meeting firm representatives and a follow-up questionnaire.  The report focuses on three main areas:

  • broker-dealers' enterprise-level frameworks to address conflicts;
  • conflicts involving new financial products; and
  • compensation.

FINRA found that the most effective firms modified their conflict frameworks to the size and complexity of their businesses, and set a "tone from the top" that emphasized the importance of treating customers ethically and fairly.  Further, the firms also outlined their employees' responsibilities to identify and manage conflicts, along with procedures for addressing

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

View source

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

SEC Advances “Responsible Retailization” Through A Potential Accredited Investor Exam And Potential Regulated Fund Reforms

On September 30, 2026, the Securities and Exchange Commission (SEC) issued two rule proposals and five notices aimed at expanding investors’ access to private markets. The package would add ways to qualify as an accredited investor, including passing a new exam administered by the Financial Industry Regulatory Authority (FINRA), broaden performance-based compensation and modernize regulated funds, including interval funds and business development companies (BDCs).
United StatesFinance and Banking
Proskauer Rose LLP
Proskauer Rose LLP
Article

SEC Proposes Rule Amendments To Expand Retail Access To Private Markets

The SEC has proposed sweeping amendments to expand retail investor access to private market strategies, including changes to performance-based compensation rules for registered investment advisers and modernization of the interval fund framework. The proposals also explore new credential-based pathways for individuals to qualify as accredited investors, potentially opening private offerings to a broader pool of eligible participants.
United StatesFinance and Banking
Duane Morris LLP
Duane Morris LLP
Article

SEC Approves FINRA’s New “Outside Activities” Rule

The Securities and Exchange Commission has approved FINRA Rule 3290, which will replace existing rules governing outside business activities and private securities transactions for registered persons. This new rule narrows the scope to focus on investment-related activities while maintaining similar supervisory obligations for member firms. Understanding the key changes and implementation requirements will be critical for broker-dealers as they update their compliance policies and procedures.
United StatesFinance and Banking
WilmerHale
WilmerHale
Article

New NYSE Delisting Rules: What Microcap Companies Need To Know About The $0.25 Minimum Trading Price

The SEC has approved new NYSE and NYSE American listing rules establishing a $0.25 minimum trading price, effective July 1, 2027. A single closing price below this threshold triggers immediate trading suspension and delisting proceedings with no cure period. Companies trading at low share prices must act now during the transition period to implement reverse stock splits and establish monitoring procedures before this hard floor takes effect.
United StatesFinance and Banking
Bevilacqua
Bevilacqua
Article

The Financing Problem Behind the AI Infrastructure Boom: What Lenders and Sponsors Need to Watch

As AI infrastructure spending surges toward $697 billion in 2026, hyperscalers and compute providers are increasingly turning to debt, structured financing, and GPU-backed collateral to fund expansion. While demand projections remain bullish, a critical timing gap is emerging between capital deployment and cash flow generation, creating significant risks for lenders, sponsors, and operators across the ecosystem.
United StatesFinance and Banking
Riveron
Riveron