Rule 2270 - Disclosure of Financial Condition to Customers
A member shall make available to inspection by any bona fide regular customer, upon request, the information relative to such member's financial condition as disclosed in its most recent balance sheet, prepared either in accordance with such member's usual practice or as required by any state or federal securities laws, or any rule or regulation therein.

Rule 2910 - Disclosure of Financial Condition to Other Members
Any member of the Association who is a party to an open transaction or who has another member's cash or securities on deposit shall furnish, upon written request of the other member, a statement of its financial condition as disclosed in its most recently prepared balance sheet.

Rule 3130 - Regulations of Members Experiencing Difficulties
A member, when so directed by the FINRA, must not expand its business during any period in which any of the following conditions have existed for more than 15 consecutive business days:

  • A firm's net capital is less than 150% of its net capital minimum requirement or such greater percentage thereof as may from time to time be prescribed by FINRA. It should be noted that the FINRA was previously known as the NASD.

  • If subject to the aggregate indebtedness requirement under SEC Rule 15c3-1, a firm's aggregate indebtedness is more than 1,000% of its net capital

  • If, in lieu of paragraph (c)(1)(B) above, the specified percentage of the aggregate debit items in the Formula for Determination of Reserve Requirements for Brokers and Dealers under SEC Rule 15c3-3 (the alternative net capital requirement) is applicable, a firm's net capital is less than 5% of its aggregate debit items

  • The deduction of capital withdrawals, including maturities of subordinated debt, scheduled during the next six months would result in any one of the conditions described above

  • The FINRA restricts the member for any other financial or operational reason

Rule 3140 - Approval of Change in Exempt Status
A member operating pursuant to any exemptive provision under Rule 15c3-3 shall not change its method of doing business in a manner that will change its exemptive status to a fully computing firm that is subject to all provisions of Rule 15c3-3; or commence operations that will disqualify it for continued exemption under Rule 15c3-3 without first having obtained the prior written approval of the Association.



Anti Money Laundering Regulations

Related Articles
  1. Financial Advisor

    SEC's CARDS Plan Creates Controversy for Brokers

    The securities industry isn't happy with the hand it may be dealt with the SEC's proposed CARDS rules.
  2. Financial Advisor

    Finra Releases Q&A Guidance on Recruiting

    FINRA has issued further guidance on its recruiting practices rule, which includes clarifying the definition of a former customer.
  3. Financial Advisor

    What Financial Advisors and Brokers Need to Know About Rule 407

    Learn about NYSE Rule 407 and how it may impact you as a financial advisor or investment broker. What you don't know about this regulation can hurt you.
  4. Financial Advisor

    Steps to Starting Up an Independent Broker Dealer

    Launching your own broker-dealer is a lot of work, but the potential payoff is great, both personally and financially.
  5. Financial Advisor

    Becoming A Registered Investment Advisor

    To become a registered investment advisor requires specific licensing, qualifications and regulations, but the greater freedom may be worth it.
  6. Investing

    The LLC Operating Agreement Template, And Why You Need It

    For some business owners, creating an LLC offers the best of both worlds. But your state's rules might not suit your needs. Hence the Operation Agreement.
  7. Financial Advisor

    The Fiduciary Rule: What Advisors Need to Know

    The rules surrounding the DOL's fiduciary proposal are confusing for advisors and clients. Here’s what we know so far.
  8. Financial Advisor

    How Advisors Can Plan for Fiduciary Rule Changes

    The DOL's new fiduciary rule will soon become law. Here's how advisors should start planning for its far-reaching impact.
  9. Financial Advisor

    The SEC Fiduciary Rule Explained

    The SEC plans to propose its own set of fiduciary rules next year. These are some of the potential implications for advisors.
  10. Financial Advisor

    Pay-to-Play Rule Back in Spotlight with Pence Nom

    The SEC pay-to-play rule, which limits campaign contributions from financial advisors, is especially relevant with Governor Mike Pence's nomination.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center