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TechBizLines.com Forum  >Education , Higher Studies , Visa  >  Study in USA  > FINRA - Supervision/FINRA Rule TOHT/ACOCASP
  Posted by V_Joseph on : 3/4/2019 8:51:00 PM
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In reply to:"  "amit_sen  for his/her post on 3/4/2019 11:42:00 PM
jasmin_patel
3/4/2019 11:42:00 PM

The first certification must be executed within 12 months of becoming a FINRA member and then annually thereafter.



 
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In reply to:"  "riya_chakrabarty  for his/her post on 3/4/2019 11:41:00 PM
amit_sen
3/4/2019 11:42:00 PM

When must a new member firm execute its first Rule 3130 certification?



 
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In reply to:"  "priyabrat_samal  for his/her post on 3/4/2019 11:40:00 PM
riya_chakrabarty
3/4/2019 11:41:00 PM

If a firm does not have a board of directors or audit committee, the firm would submit the Rule 3130 report to the firm's governing bodies and committees that serve similar functions in lieu of a board of directors and audit committee, such as a managing member, management committee, general partner, board or managers, advisory board, financial standards committee, etc. If a firm does not have a governing body or audit committee or equivalent, the report can be shared with the firm's majority shareholder or shareholders.



 
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In reply to:"  "rinku_banerjee  for his/her post on 3/4/2019 11:13:00 PM
priyabrat_samal
3/4/2019 11:40:00 PM

To whom does a firm submit the Rule 3130 report if it does not have a board of directors or audit committee?



 
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In reply to:"  "priyam_das  for his/her post on 3/4/2019 11:38:00 PM
V_Joseph
3/4/2019 11:39:00 PM

No. The Rule 3130 report must be submitted to the member's board of directors and audit committee (or equivalent bodies) in final form either prior to execution of the certification or at the earlier of their next scheduled meetings or within 45 days of the date of execution of the certification.



 
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In reply to:"  "rinku_banerjee  for his/her post on 3/4/2019 11:13:00 PM
priyam_das
3/4/2019 11:38:00 PM

Must the Rule 3130 report be submitted to the board of directors and audit committee prior to the execution of the Rule 3130 certification by the CEO(s) (or equivalent officer(s))?



 
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In reply to:"  "smita_sahoo  for his/her post on 3/4/2019 9:12:00 PM
rinku_banerjee
3/4/2019 11:13:00 PM

Before the execution of the certification can be completed, the following steps must be taken:

The member creates a report (“Rule 3130 report”) that documents the member’s processes for establishing, maintaining, reviewing, testing and modifying its compliance policies that are reasonably designed to achieve compliance with applicable federal securities laws and regulations, FINRA rules, and MSRB rules.

The firm's CEO(s) (or equivalent officer(s)), CCO(s) and any other officers the firm deems necessary to make the certification reviews the Rule 3130 report.

The CEOs(s) (or equivalent officer(s)) must meet with the CCO(s) during the preceding year to:

Discuss and review the matters that are the subject of the certification;

Discuss and review the firm's compliance efforts to date; and

Identify and address significant compliance problems and plans for emerging business areas.



 
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In reply to:"  "smita_sahoo  for his/her post on 3/4/2019 9:12:00 PM
rupali_saha
3/4/2019 11:12:00 PM

What needs to be done before the execution of the Rule 3130 certification?



 
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In reply to:"  "jasmin_patel  for his/her post on 3/4/2019 9:11:00 PM
smita_sahoo
3/4/2019 9:12:00 PM

Yes. A firm may designate multiple CCOs on Schedule A of Form BD, provided that:

Each designated CCO is a principal;

The firm precisely defines and documents the areas of primary compliance responsibility assigned to each designated CCO and makes specific provisions for which of the designated CCOs has primary compliance responsibility in areas that can reasonably be expected to overlap;

Each designated CCO satisfies all of the requirements of Rule 3130 with respect to his or her defined area of primary compliance responsibility as if that individual was the firm's only CCO; and

Collectively, the designated CCOs have the responsibilities and expertise that enable them to consult with the CEO on the totality of the subject matters required to be addressed in the certification by the CEO under Rule 3130.



 
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In reply to:"  "V_Joseph  for his/her post on 3/4/2019 8:51:00 PM
raghav_agarwal
3/4/2019 9:12:00 PM

Yes. A firm may designate multiple CCOs on Schedule A of Form BD, provided that:

Each designated CCO is a principal;

The firm precisely defines and documents the areas of primary compliance responsibility assigned to each designated CCO and makes specific provisions for which of the designated CCOs has primary compliance responsibility in areas that can reasonably be expected to overlap;

Each designated CCO satisfies all of the requirements of Rule 3130 with respect to his or her defined area of primary compliance responsibility as if that individual was the firm's only CCO; and

Collectively, the designated CCOs have the responsibilities and expertise that enable them to consult with the CEO on the totality of the subject matters required to be addressed in the certification by the CEO under Rule 3130.



 
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In reply to:"  "amit_sen  for his/her post on 3/4/2019 9:10:00 PM
jasmin_patel
3/4/2019 9:11:00 PM

Can a firm have more than one CCO for purposes of complying with Rule 3130?



 
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In reply to:"  "riya_chakrabarty  for his/her post on 3/4/2019 9:10:00 PM
amit_sen
3/4/2019 9:10:00 PM

Yes. A firm may designate a co-CEO (for a maximum of two CEOs) solely for the purpose of complying with Rule 3130. However, co-CEOs may not divide up the requirements of the Rule; rather, each of the two CEOs is required to individually discharge all of the obligations set forth in Rule 3130, each is responsible for the representations in the certification as if they were the firm’s only CEO, and the signature of each co-CEO is expected to appear on the same single annual certification.



 
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In reply to:"  "V_Joseph  for his/her post on 3/4/2019 8:51:00 PM
riya_chakrabarty
3/4/2019 9:10:00 PM

Can a firm have more than one CEO execute the FINRA Rule 3130 certification?



 
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