Board Approves Two Rulemaking Items, Meets With External Stakeholders
WASHINGTON – FINRA’s Board of Governors met virtually on September 9 and 10. During the meeting, the Board approved two rulemaking items, and received updates on FINRA’s operations, including the Examination and Risk Monitoring Program Transformation and the Market Regulation Enforcement program.
In addition, the FINRA Board continued its engagement with key stakeholders. The Board was joined by Securities and Exchange Commission (SEC) Chairman Jay Clayton and SEC Commissioner Allison Herren Lee—her first visit with the FINRA Board since her term began in July 2019—to discuss various regulatory policies and initiatives.
“These engaging discussions are a frequent component of the FINRA Board meetings, and ensure an ongoing dialogue on issues that are important to our industry and investors,” said FINRA CEO Robert Cook. “We appreciate that Chairman Clayton and Commissioner Lee joined us for the September meeting.”
The Board approved two rule proposals:
Proposed Amendments to Financial Exploitation of Specified Adults Rule – The Board approved the publication of a Regulatory Notice soliciting comment on proposed amendments to FINRA Rule 2165 (Financial Exploitation of Specified Adults). The proposal would permit: (1) extending the hold period if the member firm had reported the matter to a state regulator or agency or a court of competent jurisdiction; and (2) placing temporary holds on transactions in securities when there is suspected financial exploitation.
Proposal Relating to the Use of Electronic Signatures – The Board approved the filing with the SEC of proposed amendments to FINRA Rule 1010 (Form U4 Filing Requirements) to permit firms to obtain an electronic signature on the Uniform Application for Securities Industry Registration or Transfer (Form U4) and a conforming amendment to FINRA Rule 2263 (Arbitration Disclosure to Associated Persons Signing or Acknowledging Form U4).
For general information about FINRA’s rulemaking process, see www.finra.org/rules-guidance/rulemaking-process. More information regarding the Board’s operations, including the membership and responsibilities of its committees, is available at www.finra.org/governance.
FINRA is a not-for-profit organization dedicated to investor protection and market integrity. It regulates one critical part of the securities industry—brokerage firms doing business with the public in the United States. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.