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ARTICLE · 09 DECEMBER 2022

FINRA Issues Update On Option Account Sweep

Lowenstein Sandler LLP
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FINRA has provided an update on its targeted exam sweep related to option account opening, supervision, and disclosure (the Update). While the sweep is ongoing, FINRA's recent release...

United StatesFinance and Banking
Ethan L. Silver
Ethan L. Silver
William Brannan
William Brannan
Macauley Venora
Macauley Venora

FINRA has provided an update on its targeted exam sweep related to option account opening, supervision, and disclosure (the Update). While the sweep is ongoing, FINRA's recent release serves as a helpful reminder for FINRA-member firms to carefully review their options account opening and customer approval processes as well as their supervision of those processes and general trading and compliance.

The Update, available here, highlights a number of questions that firms should consider as they evaluate their options account opening and approval processes to determine whether their supervisory systems are reasonably designed to address risks related to supervising the approval of options accounts and trading activity in options accounts.

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