Alert April 15, 2008

FINRA Issues Regulatory Notice on Sound Practices for Preventing and Detecting Unauthorized Proprietary Trading

FINRA has issued Regulatory Notice 08-18, which is designed to assist member firms undertaking comprehensive reviews of their internal controls and risk management systems designed to prevent unauthorized trading activity.  Topics covered in the Regulatory Notice include mandatory vacation policies, heightened scrutiny of red flags, protection of systems and risk management information and transactions with affiliates.