Regulation

FINRA Pattern Day Trader Rule for Small Accounts FINRA pattern day trader rule requires $25,000 minimum equity in an account after four trades in five days, or trading is restricted.

FINRA Rule 4210: Margin Maintenance Requirements Explained FINRA Rule 4210 sets minimum equity maintenance margins: 25% for long positions, 30% for short positions. A margin call triggers when equity falls below these thresholds.

FINRA Rule 4210: Margin Requirements for Extended Hours and TBA Trades FINRA Rule 4210 sets margin requirements for non-standard settlement transactions, including extended-hours trades and mortgage-backed securities TBA contracts.

FINRA Rule 5310: Best Execution Standard for Customer Orders Guide to FINRA Rule 5310: how brokers must meet their best-execution duty through order routing, venue selection, and ongoing execution review.

FINRA Suitability Rule vs Reg BI Best Interest Standard How Reg BI's best-interest obligation differs from the older FINRA suitability rule, and what changed for brokers and investors.

FINRA Trade Reporting Facility (TRF): How OTC Equity Trades Get Reported FINRA Trade Reporting Facility captures off-exchange equity trades and feeds data into public tape, enforcing reporting deadlines for broker-dealers.

FINRA vs SEC: How the Two Regulators Divide Oversight FINRA vs SEC difference: FINRA is a self-regulatory organization overseeing broker-dealers and conduct, while the SEC is a federal agency with broader authority over securities markets and investment advisers.

Foreign Account Tax Compliance Act US legislation requiring foreign financial institutions to report American account holders to the Internal Revenue Service.

Foreign Corrupt Practices Act US anti-bribery law prohibiting payments to foreign officials; applies to US companies and nationals worldwide.

Foreign Investment Screening: CFIUS vs EU FDI Framework Compares US CFIUS and EU Foreign Direct Investment Screening Regulation for cross-border deal review, approval timelines, and national-security thresholds.

Form 8-K Material Event Disclosure Rules Which corporate events require Form 8-K filing, the four-business-day deadline, and penalties for missed material event disclosure.

Form ADV Part 2 Disclosure Obligations for Investment Advisers Form ADV Part 2 disclosure obligations: required brochure and supplement contents, update timing, and client delivery documentation for registered investment advisers.

Form D Filing Requirements for Private Placements Form D notifies the SEC of private securities offerings using Regulation D exemptions. Learn filing deadlines, required disclosures, and consequences of non-compliance.

Form S-1 — IPO Registration Statement The SEC filing through which a private company discloses its finances, risks, and business to the public ahead of selling shares.

Forward-Looking Statement Safe Harbor Under the PSLRA The PSLRA safe harbor shields companies from fraud liability when forward-looking statements about earnings and growth miss targets, provided cautionary language and good-faith basis.

FRB Regulator Federal Reserve Board, the central bank and primary regulator of commercial and investment banking in the United States.

Front-Running Prohibition Rules barring broker-dealers and advisers from trading ahead of their clients' large pending orders to capture the anticipated price move.

Gatekeeping Role AML The mandate for banks, brokers, and money services businesses to act as gatekeepers against financial crime by verifying customer identity and reporting suspicious activity.

GDPR in Financial Services How EU data protection regulation constrains personal-data collection, profiling, and customer targeting in banking and investment.

Gifts and Entertainment Compliance Rules in Finance Guidelines on dollar thresholds, pre-approval requirements, and recordkeeping for gifts and entertainment in regulated financial services firms.

Glass-Steagall Act The Glass-Steagall Act of 1933 separated commercial banking from investment banking, preventing banks from underwriting securities or engaging in investment activities. It was repealed in 1999.

Going-Private Transactions Under SEC Rule 13e-3 SEC Rule 13e-3 requires fairness opinions and heightened disclosure when insiders take a company private, protecting minority shareholders.

Gramm-Leach-Bliley Act The Gramm-Leach-Bliley Act of 1999 repealed key provisions of the Glass-Steagall Act, allowing banks to combine commercial banking with investment banking and insurance. It also established the Financial Services Modernization framework.

Hart-Scott-Rodino Act: Merger Filing Thresholds and Process Hart-Scott-Rodino merger filing thresholds: when acquisitions trigger mandatory premerger notification, dollar thresholds, and regulatory waiting periods.

How FINRA Arbitration Works for Investors Step-by-step guide to FINRA arbitration: filing a claim, selecting arbitrators, and resolving securities disputes outside civil court without appeals.

How Limit Up–Limit Down Circuit Breakers Work for Individual Stocks Walks through the price-band calculation and trading pause mechanics that trigger when individual securities move sharply under the Limit Up–Limit Down plan.

How Regulators Designate Systemically Important Financial Institutions Understand how U.S. and international regulators designate systemically important financial institutions as SIFIs and G-SIBs, triggering heightened capital and oversight requirements.

How the OECD Common Reporting Standard Works in Practice Explains how the OECD Common Reporting Standard works: financial institution reporting, data exchange, multi-country coordination, and key differences from FATCA.

How to File a CFPB Complaint as a Consumer Step-by-step guide to filing a complaint with the Consumer Financial Protection Bureau, how submissions are reviewed, and what outcomes to expect.

How to Use FINRA BrokerCheck to Vet a Broker Step-by-step guide to searching FINRA BrokerCheck for broker disclosures, disciplinary history, and red flags before opening an account.

IFRS 17 Insurance Contracts Standard Explained IFRS 17 insurance contracts standard explained: the new measurement model for insurance profit recognition, liability valuation, and why it shifts the timing of insurance earnings.

Insider Trading Definition Trading on material nonpublic information; prohibited when the trader owes a duty to the company or its shareholders.

Insider Trading Law Insider trading law prohibits trading securities based on material nonpublic information. Insiders must disclose trades and face penalties for illegal trading.

Insider Trading Restrictions Rules prohibiting the buying or selling of securities based on material non-public information, enforced by the SEC and courts.

Integration Doctrine in Securities Offerings How the SEC's integration doctrine treats multiple separate securities offerings as a single offering, potentially defeating exemptions from registration.

Intermarket Sweep Order A special order type that bypasses trade-through protection to simultaneously execute against liquidity across multiple exchanges.

International Organization of Securities Commissions The global standard-setter for securities regulation whose principles shape market rules across more than 130 jurisdictions worldwide.

Intrastate Offering Exemption Under Rule 147 The intrastate offering exemption under Rule 147 allows small businesses to raise capital within a single state without federal registration, provided strict residency and business operation tests are met.

Investment Advisers Act of 1940 The Investment Advisers Act of 1940 regulates investment advisers — individuals and firms that manage money or provide advice for compensation. It requires registration, disclosure, and imposes fiduciary duties.

Investment Advisers Act of 1940: Who Must Register with the SEC Understand the assets-under-management thresholds that determine SEC vs. state registration for investment advisers under the Investment Advisers Act of 1940.

Investment Company Act of 1940 The Investment Company Act of 1940 regulates investment companies such as mutual funds. It requires disclosure, limits leverage and conflicts of interest, and imposes governance rules.

Investment Company Act of 1940: Mutual Fund Regulation Overview Overview of the Investment Company Act of 1940: defining investment companies, mandating independent boards, limiting leverage, and regulating mutual funds and closed-end funds.

IOSCO Principles for Securities Regulation The International Organization of Securities Commissions framework of 38 standards that establish best practices for securities market oversight and investor protection.

JOBS Act The JOBS Act of 2012 eased securities regulations to help small companies raise capital. It created Regulation Crowdfunding, Regulation A+, and streamlined going-public rules for emerging growth companies.

Know Your Customer Customer identification procedures required to verify identity and assess risk in anti-money-laundering compliance.

Know Your Customer (KYC) The regulatory process through which financial firms verify a customer's identity and assess their risk profile before onboarding them as a client.

KYC Know Your Customer (KYC) is a regulatory requirement for financial institutions to verify the identity of their clients and understand their financial profiles to prevent money laundering and fraud.

KYC for Trusts and Foundations KYC requirements for trusts and foundations demand verification of trust documents, settlor identity, and beneficial ownership—more complex than individual customer onboarding.

KYC Refresh Trigger Events KYC refresh trigger events are customer actions or account changes—large transfers, new business lines, adverse media—that obligate banks to re-verify identity and reassess risk profile.

KYC Requirements for Small Broker-Dealers KYC requirements for small broker-dealers: customer verification steps, documentation, identity proofs, beneficial ownership, and ongoing monitoring obligations.

KYC Requirements in Correspondent Banking How KYC and enhanced due diligence obligations apply to correspondent banking relationships, including respondent-bank risk assessment and de-risking pressures.

Large Trader Reporting SEC rule requiring firms trading above volume thresholds to register and submit regular activity reports for market surveillance.

Limit Up-Limit Down Rule The US equity circuit breaker that pauses trading when a stock's price moves too far (typically 5–10%) within five minutes, preventing crash-like volatility.

Lock Limit Rules Limits on daily price movements in commodity and futures markets; when prices gap-limit-up or gap-limit-down, trading halts.

Lock-Up Agreement in IPOs Contractual restriction preventing insiders and pre-IPO investors from selling shares for a specified period after the company goes public.

Locked and Crossed Market Rules Under Reg NMS What locked and crossed markets are and how Reg NMS Rule 610(d) prohibits them to protect price discovery.

Look-Through Requirement for Fund Beneficial Ownership Compliance obligation to identify natural-person beneficial owners behind legal-entity clients, triggered by ownership thresholds and regulatory jurisdiction, with practical enforcement.

Market Abuse Regulation The EU framework that prohibits insider dealing, market manipulation, and unlawful disclosure of inside information.

Market Maker Quoting Obligations Regulatory requirements for designated market makers to maintain continuous two-sided quotes with minimum size and price standards.

Market Manipulation Prohibition Statutory rules prohibiting fraudulent and manipulative acts in securities trading, covering spoofing, layering, and pump-and-dump schemes.