FINRA Regulatory Notice 21-03 â Fraud Prevention â Low Priced Securities
On February 10
th, FINRA published Regulatory Notice 21-03 which focuses on fraud prevention for low-priced exchange-listed and OTC securities. The communication urges firms to review their policies and procedures relating to red flags of potential securities fraud involving low-priced securities. At the detailed data level, the notice references many of the concepts and data points OTC Markets Group has been proactively implementing over the course of the last decade to increase transparency and efficiency in the market. Our latest blog delves into the detection and monitoring points raised, location and availability of the data and how best to incorporate the information into a low-priced security risk program.