NASD Rule 1160 requires FINRA member firms to update contact information in the FINRA Contacts System (FCS) within 30 days following any changes, and to review required contact information annually.
We often receive questions concerning the FCS, which roles require the designated individual to be registered with the member firm, which roles require the designated individual to be a principal of the firm, and which roles are simply required. The information below should clear up confusion on this.
The Anti-Money Laundering (AML) Compliance Contact – This individual must be associated with your firm and is responsible for implementing and overseeing daily operations of your firm’s AML compliance program. Although this individual does not need to be registered with your firm, the designated AML compliance contact is automatically set up to receive bi-weekly 314(a) notifications from FinCEN and is therefore required to conduct these reviews on a bi-weekly basis.
Executive Representative (ER) – This individual must be a member of senior management and must be a registered principal of the firm. The ER is responsible for representing, voting, and acting for the firm in all the affairs of FINRA. The ER will receive weekly emails and occasional email blasts from FINRA. This individual must ensure the firm remains in compliance with all matters where notification is made via electronic means.
Designated Assistant for ER – The designated assistant for the ER is not a mandatory role within the FINRA Contacts System. It is only necessary if the ER would like another person within the firm to receive copies of all FINRA email correspondence, typically sent to the executive representative.
Emergency Contact (BCP) – FINRA member firms are required to designate two emergency contact persons for FINRA to contact in the event of a significant business disruption (SBD). Each designated emergency contact must be a registered principal of the firm and a member of senior management. If a firm has only one registered principal, the secondary emergency contact should be another firm employee. If the firm is a sole proprietorship with only one employee, the secondary emergency contact may be an individual with knowledge of the firm’s business operations, such as the firm’s attorney, accountant, or clearing firm contact.
Continuing Education – The individual designated as the continuing education contact is responsible for receiving e-mail notifications from FINRA regarding continuing education and Regulatory Element deadlines. The CE contact will receive notifications when a registered person is approaching the end of his or her Regulatory Element timeframe, and when a registered person is deemed inactive due to failure to complete the CE requirement. An alternate CE contact is not required if it does not apply to the member firm.
Chief Compliance Officer – This individual must be a registered principal of the firm. The CCO, or the person closest to that role, is responsible for compliance and compliance-related activities.
Chief Executive Officer – The designated CEO should be the firm’s highest-ranking executive, or the person closest to that role. This individual must be a registered principal of the firm.
Keeping your firm’s contact information current is not only required by regulation but is also important from a business standpoint since it helps you ensure that important information from FINRA or FinCEN is being sent to the appropriate person. If you have questions pertaining to your current FINRA contacts, please contact your Regulatory Compliance account manager at 603-434-3594.
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