Wagner Logo

Follow us on Twitter View our profile on LinkedIn Like us on Facebook 




Learn More About Our Investment Management Law Practice

Please click here to find details about our investment management law practice.



You can view all of our investment management law alerts and sign up to receive our newsletters by clicking here

You can register for upcoming webinars and find recordings of past webinars from Steve Wilkes' investment management law webinar series by clicking here.





The Wagner Law Group

The Wagner Law Group is a nationally recognized practice in the areas of ERISA and employee benefits, estate planning, employment, labor and human resources and investment management.


Established in 1996, The Wagner Law Group is dedicated to the highest standards of integrity, excellence and thought leadership and is considered to be amongst the nation's premier ERISA and employee benefits law firms. The firm has seven offices across the country, providing unparalleled legal advice to its clients, including large, small and nonprofit corporations as well as individuals and government entities worldwide. The Wagner Law Group's 32 attorneys, senior benefits consultant and five paralegals combine many years of experience in their fields of practice with a variety of backgrounds. Eight of the attorneys are AV-rated by Martindale-Hubbell and seven are Fellows of the American College of Employee Benefits Counsel, an invitation-only organization of nationally recognized employee benefits lawyers.  Five of the firm's attorneys have been named to the prestigious Super Lawyers list for 2017, which highlights outstanding lawyers based on a rigorous selection process.







Contact Info

The Wagner Law Group


  Integrity | Excellence



Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110


Washington, D.C.

Tel: (202) 969-2800


Fax: (202) 969-2568

 800 Connecticut Avenue, N.W.

Suite 810

Washington, D.C. 20006



Tel: (847) 990-9034

Fax: (847) 557-1312

190 South LaSalle Street

Suite 2100

Chicago, IL 60603



Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418



Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 


San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104


St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
25 W. Moody Avenue
St. Louis, MO  63119 







 February 27, 2018 


Investment Management

Law Alert



Going into Effect in 2018





There are a host of new and amended rules promulgated by the Financial Industry Regulatory Authority ("FINRA") that will be going into effect throughout 2018. This Alert summarizes these impending rule changes.


FINRA Qualification and Registration Rules


In our November 16, 2017 Alert, we discussed the new consolidated registration rules which appear in FINRA Rules 1210, 1220, 1230 and 1240. They become effective on October 1, 2018. Beginning on this date, registered representatives and principals, and individuals desiring to register as such, will be subject to a new regime.


Financial Exploitation of Specified Adults (new FINRA Rule 2165) and Customer Account Information ( amended FINRA Rule 4512)


New rule 2165 and amended rule 4512 became effective on February 5, 2018.   Together they provide member firms with the tools to take action if they reasonably suspect that financial exploitation has occurred or will occur, not only with respect to those age 65 and older, but also those who may be impaired regardless of their age.  As a result, firms can contact an account holder's "trusted contact person" and/or place a temporary hold on disbursements from the account. Rule 4512 requires that the name and contact information for a trusted contact person must be obtained for each non-institutional account, not only with respect to the account of a "Specified Adult."   Under Rule 4512, a trusted contact person must be a natural person age 18 or older. FINRA also released Frequently Asked Questions (the "FAQs") on these rules.


FinCEN Customer Due Diligence Rule (CDD Rule)


 Firms have until May 11, 2018, to comply with the Financial Crimes Enforcement Network's (FinCEN's) CDD Rule.  The CDD Rule enhances customer due diligence for financial institutions, including broker-dealers. The rule identifies four components of customer due diligence: (1) customer identification and verification; (2) beneficial ownership identification and verification; (3) understanding the nature and purpose of customer relationships; and (4) ongoing monitoring for reporting suspicious transactions and, on a risk basis, maintaining and updating customer information.


Customer Confirmation (Amendments to FINRA Rule 2232)


Amended FINRA Rule 2232 goes into effect on May 14, 2018.  The rule requires a member firm to disclose mark-ups or mark-downs with respect to trades with retail customers in corporate or agency debt securities if the member also executes offsetting principal trades in the same security on the same trading day. The amended rule also mandates the disclosure of two additional pieces of information: (1) a reference, and a hyperlink, if applicable, to a web page hosted by FINRA that contains publicly available trading data for the specific security that was traded; and (2) the execution time of the transaction, expressed to the second.


Margin Requirements (Amendments to FINRA Rule 4210)


The new margin requirements for covered agency transactions will become effective on June 25, 2018. Covered agency transactions include: (1) To Be Announced (TBA) transactions, inclusive of adjustable rate mortgage (ARM) transactions; (2) Specified Pool Transactions; and (3) transactions in Collateralized Mortgage Obligations (CMOs), issued in conformity with a program of an agency or Government-Sponsored Enterprise (GSE), with forward settlement dates. Note that the risk limit determination requirements under the amendments to Rule 4210 were effective on December 15, 2016.




Please contact Stephen Wilkes, swilkes@wagnerlawgroup.com, or Livia Aber, laber@wagnerlawgroup.com, if you have any questions.




This Newsletter is protected by copyright. Material appearing herein may be reproduced with appropriate credit.


This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.