New FINRA Rule 4111 ("Restricted Firm Obligations"), which imposes additional requirements on broker-dealers deemed to pose a significant risk to investors, will go into effect on January 1, 2022.
As previously covered, the new rule concerns firms with "significantly higher levels of risk-related disclosures (including sales-practice related disclosure events) than other similarly sized peers based on numeric, threshold-based criteria." The rule subjects restricted firms to additional limitations on their conduct or operations and requires them to post assets in a segregated account.
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