FINRA CAUTIONS FIRMS IN ITS REGULATORY NOTICE 14-40 THAT CONFIDENTIALITY PROVISIONS IN SETTLEMENT AGREEMENTS AND IN THE ARBITRATION DISCOVERY PROCESS MAY LEAD TO VIOLATIONS OF FINRA RULE 2010

In Regulatory Notice 14-40 (“RN 14-40”), released last week, FINRA cautioned firms on confidentiality or settlement agreements that prohibit or restrict a party from communicating or providing documents to FINRA or other securities regulators.  FINRA warned that such...