Operations Management - FINRA Plans Enforcement Cases On ARS, Convertibles

FINRA Plans Enforcement Cases On ARS, Convertibles

Auction rate securities and reverse convertibles are among the areas that will be targeted by the Financial Industry Regulatory Authority in a slew of enforcement actions expected soon. It also is warning firms that strained resources and layoffs are no excuse to delay responses to FINRA's document production requests.

In the coming weeks, FINRA will brings its first enforcement action over the suitability of sales of reverse convertible notes, according to Susan Merrill, chief of enforcement at the self-regulatory organization. "These are very complex products that are often sold as simple bonds but they're really anything but," Merrill told attendees at a Securities Industry and Financial Markets Association event last Tuesday.

Reverse convertibles are short-term bonds tied to ...

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Covering TransactionProcessing Issues BeforeThey Clear and Settle

FINRA Plans Enforcement Cases On ARS, Convertibles

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They Clear and Settle