The Financial Industry Regulatory Authority Board of Governors approved five rule proposals at its March meeting in New York, according to a FINRA news release.
The proposals reflect feedback on the FINRA Forward rule modernization initiative, which is intended to improve the authoritys effectiveness and efficiency in pursuing its mission of protecting investors and safeguarding market integrity.
The approved measures were as follows;
-Shortened Exam Waiting Periods: A proposal to shorten the waiting periods to retake FINRA qualification exams.
-Electronic Delivery of Regulatory Requests: A proposal to deliver electronically requests for information and testimony to member firms through FINRA Gateway, the authority’s compliance platform. The proposal supports modern communication practices and recognizes that all member firms already use FINRA’s systems for registration and other compliance functions.
-Streamlined Allocation Approval Requirements: A proposal to eliminate the requirement that late allocations of bulk investment adviser orders be approved by a firm principal. The proposal recognizes the limited utility and operational challenges of obtaining principal approval in today’s automated environment while maintaining important investor protections.
-Alternative Investment Reconciliation: A proposal to adjust reconciliation requirements for certain alternative investments to conform with no-action relief recently granted by the Securities and Exchange Commission for those investments.
-Arbitration Procedure Enhancements: A proposal to amend FINRA’s Codes of Arbitration Procedure to provide parties with greater input into replacing arbitrators. The proposal would also codify FINRA’s current practice of compensating replacement arbitrators for time spent reviewing recordings and transcripts.
“These rule proposals reflect our commitment to regulatory efficiency and responsiveness to the needs of today’s securities industry and markets without compromising investor protection,” said Scott Curtis, Chair of the FINRA Board of Governors. “By shortening exam waiting periods, embracing electronic delivery of regulatory requests, streamlining operational requirements and updating alternative investment reconciliation requirements, we are reducing unnecessary burdens on member firms and supporting more efficient market operations. At the same time, our enhancements to arbitration procedures demonstrate our focus on ensuring fair processes for all participants.”
At the meeting, the board also approved the allocation of last year’s fine monies to various initiatives and received several briefings, including its annual briefing on examinations and investigations as well as an update on enhancements to FINRA’s enforcement program from Executive Vice President of Enforcement Bill St. Louis. In addition, the board received briefings on FINRA’s cyber and information security and the ongoing reorganization of its regulatory oversight functions and market services into two new groups: Regulatory Operations and Market & Regulatory Services.
The attorneys at Hyman Cotter have considerable experience with FINRA’s procedures for expunging false, defamatory and erroneous disclosures from a registered representative’s record. This experience includes seeking expungement in existing FINRA customer and employment arbitrations, as well as filing separate FINRA arbitrations for the sole purpose of seeking expungement. If you have any concerns about problematic disclosures on your CRD record or those that are viewable on FINRA’s BrokerCheck portal, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a free consultation.
