Insights & Regulatory Updates
FINRA Strengthens Borrowing and Lending Rules: Key Amendments to Rule 3240 Effective April 2025
The Financial Industry Regulatory Authority (FINRA) has adopted significant amendments to Rule 3240, which governs borrowing and lending arrangements between registered persons and their customers. These updates, effective April 28, 2025, are designed to reinforce the general prohibition against such arrangements and introduce several key modifications, including stricter notice and approval requirements, a modernized definition of “immediate family,” and narrower exceptions for personal and business relationships.
From Likes to Lawsuits: FINRA Flags Compliance Pitfalls in Influencer Marketing and Crypto Promotions
With social media influencers dominating the advertising space and crypto assets all the rage, it's no surprise that financial firms are exploring new ways to reach clients and promote products. However, the recent insights from FINRA’s Advertising Regulatory Conference highlight a cautionary tale for firms rushing to leverage these trendy marketing tactics: proceed with caution, and bring your compliance team along for the ride.