June 15, 2009

Kaplan Compliance Solutions has developed a streamlined solution in response to the new Regulatory Action Summary Questions required by FINRA.

On May 18, 2009 the SEC approved amendments to Forms U4 and U5, which make significant changes to disclosure questions on both forms, including the addition of questions about certain regulatory actions that will be used to identify people who are subject to a particular category of statutory disqualification under federal securities laws and FINRA bylaws, the vendor said.

Under the new regulation, firms are required to provide responses to the new disclosure questions for existing registered representatives by November 14, 2009.

"Securities firms are challenged with gathering data and updating hundreds or thousands of disclosure files for their Registered Representatives, and the penalty for not complying could be severe," Lisa Hastings, SVP of Client Services at Kaplan Compliance Solutions, said in a release.

"Kaplan Compliance Solutions can take on this tedious and time consuming project so firms can remain focused on their core revenue-generating activities."

KCS has created a one-page, easy-to-complete online questionnaire that captures the required responses from registered representatives for Form U4.

The responses are bundled and sent to FINRA electronically. Firms provide KCS with an electronic file containing the name, CRD number and email address of their Registered Representatives and KCS emails the questionnaire to the Registered Representatives, tracks their responses, and sends automated reminders to those who do not respond.

If requested, KCS also will provide reports that show the percentage of Registered Representatives who have complied, the percentage that have not complied, each Registered Representative's response, and a list of individuals who have not responded.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in ...