CCOutreach BD National Seminar

March 10, 2009

SELECTED RESOURCES^*

Panel One:
Current Regulatory Environment

Rules, Proposals and Notices

• Proposed FINRA Rule Addressing the Circulation of Rumors
  www.finra.org/notices/08-68/

• Proposed FINRA Rule 3110(b)(3): Supervision of Outside Securities Activities
  www.finra.org/notices/08-24/

News Releases

• SEC Press Release regarding assessing risk management practices
  www.sec.gov/news/press/2008/2008-33.htm and
  www.sec.gov/news/press/2008/report030608.pdf

Relevant Actions

• SEC Press Release regarding charges of a multi-million dollar Ponzi scheme conducted by an investment fund manager and his firm
  www.sec.gov/news/press/2009/2009-5.htm

• SEC Press Release regarding charges of insider trading against Wall Street professionals and others
  www.sec.gov/news/press/2008/2008-301.htm

Guidance, Tools and Other Resources

• FINRA Exam Priorities
  www.finra.org/exampriorities/communications/

• FINRA Rulebook Consolidation Web Page
  www.finra.org/rules/consolidation/

• SEC Spotlight on Short Sales, which includes relevant rules, amendments and staff tips to broker-dealers on avoiding failures to deliver securities
  www.sec.gov/spotlight/shortsales.htm

• Speech by SEC Staff, Lori Richards, Director, Office of Compliance Inspections and Examinations, Compliance through Crisis: Focus Areas for SEC Examiners and Compliance Professionals (October 21, 2008)
  www.sec.gov/news/speech/2008/spch102108lar.htm

Panel Two:
Information Protection and Privacy

Rules, Proposals and Notices

• FINRA Regulatory Notice 07-36, Supervision of Recommendations after a Registered Representative Changes Firms (August 2007)
  www.finra.org/notices/07-36/

• FINRA Regulatory Notice 08-69, Alert to Member Firms About the Federal Trade Commission's FACT Act Regulations and the Announcement of the FTC's Decision to Delay Enforcement of the Red Flags Rule until May 1, 2009
  www.finra.org/notices/08-69/

• NASD Notice to Members 05-48, Members' Responsibilities When Outsourcing Activities to Third-Party Service Providers (July 2005)
  www.finra.org/ntm/05-48/

• NASD Notice to Members 05-49, NASD Reminds Members of Their Obligations Relating to the Protection of Customer Information (July 2005)
  www.finra.org/ntm/05-49/

• Proposed amendments to Regulation S-P
  www.sec.gov/rules/proposed/2008/34-57427.pdf

• Regulation S-P
  www.sec.gov/rules/final/34-42974.htm

Relevant Actions

• In the Matter of LPL Financial Corporation ("LPL"), formerly known as Linsco/Private Ledger Corp., SEC Action against LPL alleging a failure to adopt policies and procedures to safeguard customers' personal information
  www.sec.gov/litigation/admin/2008/34-58515.pdf

• In the Matter of Next Financial Group, Inc. ("NEXT"), SEC Action against NEXT alleging willful violations of Regulation S-P by disclosing nonpublic personal information about customers to nonaffiliated third parties
  www.sec.gov/litigation/admin/2007/34-56316.pdf

Guidance, Tools and Other Resources

• FINRA Checklist for a Compromised Account
  www.finra.org/customerprotection/checklist/

• FINRA Customer Information Protection and Firm Identity Protection Web Pages
  www.finra.org/issuecenter

• FINRA Webcast: Books and Records: What a Registered Representative Needs to Know
  www.finra.org/webcasts/regrep/

• FINRA Webcast: Important Issues in Customer Data Protection
  www.finra.org/webcasts/cdp/

• FBI Press Release regarding account intrusions
  http://atlanta.fbi.gov/pressrel/2008/at122308.htm

• Speech by SEC Staff, John Walsh, Chief Counsel, Office of Compliance Inspections and Examinations, Compliance Professionals versus Identity Thieves (October 5, 2006)
  www.sec.gov/news/speech/2006/spch100506jhw.htm

Panel Three:
Product-Specific Supervision — Ask the CCO

Rules, Proposals and Notices

• NASD Notice to Members 05-26, NASD Recommends Best Practices for Reviewing New Products (April 2005)
  www.finra.org/ntm/05-26/

• NASD Rule IM-2310-2(e) Fair Dealing with Customers with Regard to Derivative Products or New Financial Products
  www.finra.org/finramanual/rules/im2310_2/

Guidance, Tools and Other Resources

• FINRA Webcast: New Products Suitability Considerations
  www.finra.org/webcasts/suitability/

• Joint SEC and NASD Report, "Examination Findings Regarding Broker-Dealer Sales of Variable Insurance Products"
  www.sec.gov/news/studies/secnasdvip.pdf

Panel Four:
Enterprise-Wide Supervision

Rules, Proposals and Notices

• FINRA Regulatory Notice 08-24, Proposed Consolidated FINRA Rules Governing Supervision and Supervisory Controls (May 2008)
  www.finra.org/notices/08-24/

• NASD Notice to Members 98-96, NASD Elaborates on Member Firms' Supervision Responsibilities for Trade Reporting and Market-Making Activities (December 1998)
  www.finra.org/ntm/98-96/

• NASD Notice to Members 99-45, NASD Provides Guidance on Supervisory Responsibilities (June 1999)
  www.finra.org/ntm/99-45/

• NASD Notice to Members 04-37, SEC Approves Rules Requiring Members to Create Business Continuity Plans and Provide Emergency Contact Information (May 2004)
  www.finra.org/ntm/04-37/

• NASD Notice to Members 05-48, Members' Responsibilities When Outsourcing Activities to Third-Party Service Providers (July 2005)
  www.finra.org/ntm/05-48/

Relevant Actions

• SEC Press Release regarding charges for improperly accepting lavish gifts
  www.sec.gov/news/press/2008/2008-291.htm

Guidance, Tools and Other Resources

• FINRA Business Continuity Planning Resources Web Page
  www.finra.org/bcp

• FINRA Supervisory Control Resources Web Page
  www.finra.org/supervisorycontrol

• FINRA Webcast: Supervisory Considerations for Working with Seniors
  www.finra.org/webcasts/seniors/

• SEC Staff Guidance on Compliance, Supervisory, and Other Practices Used For Servicing Senior Investors (September 2008)
  www.sec.gov/spotlight/seniors/seniorspracticesreport092208.pdf

^* This resource list was compiled by Commission Staff and FINRA.