FINRA recently issued Regulatory Notice 11-52 reminding firms about their supervisory obligations with respect to representatives' use of certifications and designations. The Notice discussed survey results of broker-dealers relating to how they approve and review the use of designations and certifications, and the notice discusses "sound practices" that FINRA identified being used by some firms in connection with supervision of this area.
Importantly, the Notice does not set forth a new rule or policy, nor does it seek to adopt a new rule. Rather, the Notice simply reminds firms of their obligations and may give some CCOs and other managers some policy and supervision ideas to consider. And, while there are no new rules at play here, given that FINRA is issuing this type of Regulatory Notice should put alert firms that this is an issue on the regulator's radar. To that end, expect that this issue may be addressed during both routine and cause examinations.
