{"id":6055,"date":"2018-06-08T14:30:28","date_gmt":"2018-06-08T18:30:28","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=6055"},"modified":"2018-06-08T14:30:28","modified_gmt":"2018-06-08T18:30:28","slug":"finras-failure-to-supervise-rule","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/","title":{"rendered":"FINRA\u2019s Failure to Supervise Rule"},"content":{"rendered":"<p>Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set out the appropriate conduct for its members.\u00a0 This includes several rules detailing member firms\u2019 requirement to supervise their brokers and advisers.<\/p>\n<p><a href=\"http:\/\/finra.complinet.com\/en\/display\/display_main.html?rbid=2403&amp;element_id=11345\" target=\"_blank\">FINRA Rule 3110<\/a> is the main rule discussing supervision. It requires firms to \u201cestablish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance\u201d with both FINRA rules and state or federal securities laws. FINRA requires these procedures to be in written form. A copy of the procedures must be kept in every location where supervisory activities are conducted.<\/p>\n<p>Once a brokerage firm establishes a supervisory system, it must routinely check that the system works properly. To ensure this, FINRA requires firms to assign a qualified principal to each registered person at the firm. The principal is responsible for supervising the registered person\u2019s actions.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/\"  title=\"Continue Reading FINRA\u2019s Failure to Supervise Rule\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set out the appropriate conduct for its members.\u00a0 This includes several rules detailing member firms\u2019 requirement to supervise their brokers and advisers. FINRA Rule 3110 is the main rule discussing supervision. It requires firms to \u201cestablish and maintain [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[607],"tags":[499],"class_list":["post-6055","post","type-post","status-publish","format-standard","hentry","category-failure-to-supervise","tag-failure-to-supervise-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINRA\u2019s Failure to Supervise Rule &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018<\/title>\n<meta name=\"description\" content=\"Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set &#8212; June 8, 2018\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA\u2019s Failure to Supervise Rule &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018\" \/>\n<meta name=\"twitter:description\" content=\"Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set &#8212; June 8, 2018\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Silver Law Group\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"FINRA\u2019s Failure to Supervise Rule &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018","description":"Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set &#8212; June 8, 2018","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/","twitter_card":"summary_large_image","twitter_title":"FINRA\u2019s Failure to Supervise Rule &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018","twitter_description":"Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set &#8212; June 8, 2018","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/#article","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/"},"author":{"name":"Silver Law Group","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"headline":"FINRA\u2019s Failure to Supervise Rule","datePublished":"2018-06-08T18:30:28+00:00","mainEntityOfPage":{"@id":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/"},"wordCount":426,"keywords":["failure to supervise"],"articleSection":["Failure to Supervise"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/","url":"https:\/\/www.silverlaw.com\/blog\/finras-failure-to-supervise-rule\/","name":"FINRA\u2019s Failure to Supervise Rule &#8212; Securities Arbitration Lawyers Blog &#8212; June 8, 2018","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/#website"},"datePublished":"2018-06-08T18:30:28+00:00","author":{"@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"description":"Financial Industry Regulatory Authority (\u201cFINRA\u201d) is the non-governmental organization that regulates stockbrokers and brokerage firms. 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