Regulatory Reporting Requirements Wednesday, …

1 2016 Financial Industry Regulatory Authority, Inc. All rights reserved. 1 Regulatory Reporting Requirements Wednesday, May 25 10:00 11:00 This session focuses on Regulatory Requirements and firm practices related to Reporting and disclosure. FINRA panelists highlight key Reporting Requirements including Requirements for maintaining Forms U4 and U5, customer complaint Reporting obligations, and FINRA Rule 4530 Reporting obligations. Moderator: Anthony Cavallaro Senior Vice President FINRA Office of Fraud Detection and Market Intelligence Panelists: Monica Daggs Senior Vice President and CFS AML Compliance Officer Sorrento Pacific Financial, LLC and CUSO Financial Services, LP Mario DiTrapani Vice President FINRA Registration and Disclosure Mark D. Knoll Attorney Bressler, Amery & Ross, Debra Roth Executive Director and Head of the Compliance Regulatory Group Morgan Stanley 2016 Financial Industry Regulatory Authority, Inc.

2 All rights reserved. 2 Regulatory Reporting Requirements Panelist Bios: Moderator: Anthony Cavallaro is a senior vice president and the head of the Central Review Group of FINRA s Office of Fraud Detection and Market Intelligence. He is responsible for managing two units that review and investigate Regulatory filings, complaints and other matters received regarding violations of SEC and FINRA rules and regulations. Mr. Cavallaro reports to the Department s Executive Vice President. Prior to his current role, Mr. Cavallaro was a vice president in the Member Regulation Department and also served in the Enforcement Department of FINRA where he managed two units that investigated and prosecuted violations of securities laws and regulations. Mr. Cavallaro was a vice president at the new york Stock Exchange and began serving at FINRA when NYSE Member Regulation and Enforcement consolidated with NASD to form FINRA in 2007.

3 Prior to joining the NYSE in 1997, Mr. Cavallaro was an Assistant District Attorney in the new york County District Attorney s Office where he was responsible for investigating and prosecuting various criminal matters including white-collar cases. Mr. Cavallaro received his law degree from St. John s University School Law and a in finance from Fordham University, College of Business Administration. He is a military veteran and retired with the rank of major after 20 years of service in the US Army Reserve. Panelists: Monica Daggs is Senior Vice President, Implementations and Trading at Sorrento Pacific Financial, LLC and CUSO Financial Services, LP (SPF & CFS). Her current role includes oversight of the firms trading services, implementations, internal audit, and Regulatory compliance. Ms. Daggs has more than 15 years of industry experience in Operations, Compliance, Legal, and Internal Control with a strong background working with financial institutions and independent contractor models.

4 Having joined SPF & CFS in 2005 to oversee the internal control and supervisory structure of the firm, Ms. Daggs has also directly overseen Compliance, Internal Control and Registration. Prior to joining SPF & CFS, Ms. Daggs was responsible for day-to-day management of advisory compliance for Linsco/Private Ledger with a focus on system automation and internal surveillance. She has served as the FINRA District 2 Representative for large firms and has served on the FINRA Regulatory Advisory Committee. Ms. Daggs received her bachelor degree from the University of Illinois. Mario DiTrapani is Vice President, FINRA, Registration and Disclosure (RAD), which is responsible for the operation of the Central Registration Depository (Web CRD ), the Investment Adviser Registration Depository (IARDTM) and FINRA BrokerCheck . His current management responsibilities encompass the following RAD units: Regulatory Services and Operations, Regulatory Review and Disclosure, Quality Control and Communications.

5 Mr. DiTrapani began his tenure with FINRA in 2006 as part of NASD, which consolidated with the NYSE Member Regulation in 2007 to form FINRA. Mr. DiTrapani also serves as FINRA s Executive Sponsor for FINRA s Latino Affinity Network, an employee resource group designed to promote diversity and inclusion. He also currently serves on the Securities and Insurance Licensing Association s (SILA) Board of Directors as a Regulatory Advisor. Prior to joining FINRA, he was Senior Vice President and Deputy Director of Compliance for UBS Financial Services Inc., where he oversaw registration, insurance licensing, Regulatory Reporting , outside accounts and outside business activities. Mr. DiTrapani also served as President of the Association of Registration Management (ARM). He has been a financial services industry professional for over 30 years and has served on various industry/ Regulatory committees focusing on registration and qualifications issues.

6 Mr. DiTrapani holds a Bachelor of Business Administration degree in Finance and Investments from the Bernard M. Baruch College of the City University of new york . Mark D. Knoll is Partner in Bressler, Amery & Ross, , located in new york , new york . Mr. Knoll s practice focuses on counseling and defending broker-dealers, investment advisers and other financial institutions in Regulatory enforcement, litigation and compliance matters. In his Regulatory enforcement practice, Mr. Knoll has represented clients in matters before the SEC, FINRA, CFTC, CME, NFA and several state securities regulators involving a wide range of issues, including trading and capital markets, registration, complaint Reporting , sales practice, supervision and operations. In his litigation practice, Mr. Knoll has represented issuers in both individual securities fraud and class-action matters, and represents broker-dealers in a wide variety of substantial arbitration and civil litigation matters.

7 Finally, Mr. Knoll also counsels broker-dealer and investment adviser clients regarding all aspects of 2016 Financial Industry Regulatory Authority, Inc. All rights reserved. 3 their compliance programs, along with registration and Reporting issues. Prior to joining Bressler, Amery & Ross, Mr. Knoll served as a director and counsel to the regional head of compliance for the Americas at Credit Suisse Securities (USA) LLC. Debra A. Roth is an executive director and Head of the Compliance Regulatory Group at Morgan Stanley, where she is responsible for coordinating and managing the firm's relationships with the SEC, CFTC, self- Regulatory organizations, exchanges, and state regulators on behalf of both the institutional and retail broker-dealers. In this role, she supervises the firm's responses to Regulatory examinations, inquiries, sweeps, surveys and ad hoc information requests.

8 Prior to her current role, she oversaw the firm s Registration Department, Employee Trading Group, Policies & Procedures Group and Examinations & Inquiries Group. Before joining the Compliance Department, Ms. Roth was the East Coast Head of Client Litigation, where her responsibilities included supervision of arbitrations, litigation and Regulatory matters arising in the eastern United States as well as Regulatory Reporting functions nationwide. She was previously a partner in a new york City law firm where she focused on civil litigation and arbitration matters. She received her law degree from Brooklyn Law School and her bachelor s degree from Purchase College, SUNY. FINRA Annual Conference May 23 25, 2016 Washington, DC Regulatory Reporting Requirements FINRA Annual Conference 2016 FINRA. All rights reserved.

9 Moderator Anthony Cavallaro, Senior Vice President Office of Fraud Detection and Market Intelligence, FINRA Panelists Mark D. Knoll, Attorney, Bressler, Amery & Ross Monica Daggs, Senior Vice President Trading and Implementations, Certified Fund Specialist/AML Compliance Officer, CUSO Financial Services, LP Mario DiTrapani, Vice President Central Registration Depository/Public Disclosure, FINRA Debra Roth, Legal and Compliance Division, Morgan Stanley 1 Panelists FINRA Annual Conference 2016 FINRA. All rights reserved. Outline Forms U4/U5 and U6 FINRA Rule 4530 Handling and Reporting of Complaints Case Studies Q&A 2 Uniform Registration Forms Regulatory Reporting Requirements FINRA Annual Conference 2016 FINRA. All rights reserved. Fundamentals of Responding to Forms U4/U5/BD questions Forms U4/U5 Customer Complaint Questions Form U5 Disclosure Certification Checkbox Form U6 and Investigation Disclosures Form U4 Other Business FINRA Rule 3110(e) Forms U4 & U5 Filing Tips 4 Topics of Discussion FINRA Annual Conference 2016 FINRA.

10 All rights reserved. Form U4 (Uniform Application for Securities Industry Registration or Transfer) Registered Representatives ( RRs ) have an obligation to: File a complete and accurate initial Form U4. Amend their Form U4 within 30 days whenever an event occurs to render a previous response inaccurate or incomplete. Events triggering Statutory Disqualification must be reported within 10 days. Form U5 (Uniform Termination Notice for Securities Industry Registration) Broker-dealers have an obligation to: File a Form U5 upon termination of an RR. Amend an RR s Form U5 as needed, within 30 days whenever an event occurs to render previous information inaccurate or incomplete. 5 Individual and Broker-Dealer Disclosures FINRA Annual Conference 2016 FINRA. All rights reserved. Form BD (Uniform Application for Broker-Dealer Registration) Like Forms U4 and U5, amendments must be filed within 30 days of an event rendering a previous response inaccurate or incomplete.