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

    What Advisors Need to Know About Rule 3210

    Here's what advisors and brokers need to know about FINRA Rule 3210.
  2. Insights

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  3. Financial Advisor

    FINRA Rule 2273: Your Recruiting Questions Answered

    An in-depth look at and Q&A on FINRA's new recruiting practices rule, which goes into effect in November.
  4. Personal Finance

    NYIF Instructor Series: SEC Customer Protection Rule

    In this short instructional video Jack Farmer explains what SEC Rule 15c3-3 is and how it applies to you as an investor.
  5. 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.
  6. Financial Advisor

    Why Financial Advisor Background Checks Are Vital

    An alliance of public interest groups is pressuring FINRA to broaden its BrokerCheck tool.
  7. Taxes

    Are You Missing Out On These Tax Exemptions?

    To lower your tax bill, make sure that you're taking all the exemptions that apply to you.
  8. Insights

    DOL Fiduciary Rule: Everything You Need to Know

    The Department of Labor (DOL) Fiduciary Rule expands the “investment advice fiduciary” definition under the Employee Retirement Income Security Act of 1974 (ERISA) and began to go into effect ...
  9. Financial Advisor

    RIAs: Watch the SEC’s Advertising Reg Fine Print

    Advisors need to understand the SEC's advertising rules to avoid potential liability and enforcement actions.
  10. Investing

    Footnotes: Early Warning Signs For Investors

    These documents hold very important information, but reading them takes skill.
Frequently Asked Questions
  1. Why Do Most of My Mortgage Payments Start Out as Interest?

    Fear not: Over the life of the mortgage, the portions of interest to principal will change.
  2. What is the difference between secured and unsecured debts?

    The differences between secured and unsecured debt, and how banks buffer risks associated with each type of loan through ...
  3. How Many Times has Warren Buffett Been Married?

    Warren Buffett has been married twice in his life, but the circumstances surrounding the marriages were unconventional.
  4. What's the smallest number of shares of stock that I can buy?

    Many people would say the smallest number of shares an investor can purchase is one, but the real answer is not as straightforward. ...
Trading Center