Broker-Dealer Compliance Manual Section 19- Low Priced Securities (Penny Stocks)

The Broker-Dealer Written Supervisory Procedures Section on Penny Stocks serves as an important part of a firm’s written supervisory procedures (WSPs) and overall compliance program in accordance with FINRA Rule 3110.  The WSP Section helps firms outline and implement effective supervisory processes regarding a firm’s Penny Stock business.  The customizable WSP Section allows firms to memorialize their compliance and supervisory processes and includes eight (8) separate sections and exhibit list that help firms outline effective supervisory processes that can be further customized to align with their specific business model. Members also viewed SEC Sample Schedule 15G, FINRA Sample Penny Stock Risk Disclosure Document, SEC’s Disclosure Statement on Microcap Stock- A Guide for Investors, and our WSP Library.

Version/Update: V5-03312024

Total Page Count/Format: 19/.docx

Source/Author(s): Connexien