Ad Hoc Committees

FINRA departments also create specific subject-matter committees as needed to consult on various issues. The composition of the committees and their meeting frequency depends upon FINRA’s consultation needs related to the subject matter.

Current active ad hoc committees include the following:

Complaints Initiatives Committee (CIC)—composed of 23 individuals representing large firm members that file much of the information collected pursuant to Rule 4530 (Reporting Requirements), especially information regarding written customer complaints required by Rule 4530(d). The CIC advises FINRA’s Office of Fraud Detection and Market Integrity (OFDMI) regarding issues and trends relating to the rule’s requirement to report quarterly statistical and summary information regarding written customer complaints. FINRA staff consults with the CIC on changes to Rule 4530, related technology application issues and Regulatory Notices and frequently asked questions (FAQs) that are published regarding Rule 4530.

FINRA Staff Liaison:
Anthony Cavallaro

FinTech Industry Committee—composed of 14 members drawn from member firms, academia, and industry participants, in addition to two Securities and Exchange Commission (SEC) observers and two North American Securities Administrators Association (NASAA) observers. The committee provides FINRA, member firms and others with a platform for ongoing dialogue and analysis of FinTech developments, including with respect to their potential impact on FINRA’s investor protection and market integrity objectives; challenges to the adoption of FinTech-based products or services; opportunities to improve interactions between FinTech firms and FINRA to support innovation that is consistent with FINRA’s investor protection and market integrity objectives; and possible FINRA FinTech initiatives.

FINRA Staff Liaisons:
Haimera Workie
Steve Polansky

Firm Element Training Committee—composed of seven to 10 member firm representatives. The committee advises FINRA’s E-Learning Program—which maintains a suite of training courses on a range of compliance topics—regarding the development of e-learning courses and their content.

FINRA Staff Liaison:
David Scrams

Licensing and Registration Council (LRC)—composed of 10 industry members, five NASAA members and two SEC observers. The committee advises FINRA’s Registration and Disclosure Department regarding broad issues relating to the licensing and registration of financial services firms and their associated persons. The LRC provides a forum for the open discussion of issues relating to Web CRD® and the Investment Adviser Registration Depository (IARDTM), and provides recommendations for enhancements of those systems. The LRC also addresses issues regarding FINRA qualification examinations and maintains a Registration and Qualification Sub-Committee consisting solely of industry members to make policy and system recommendations to the larger committee.

FINRA Staff Liaison:
Mario DiTrapani

Market Surveillance Advisory Group (Advisory Group)—composed of six experts in fields ranging from physics, data science, machine learning and artificial intelligence, as well as trading and financial market structure. The Advisory Group provides input to help FINRA evaluate the current level of sophistication of its markets surveillance program and to explore innovations in modern financial analysis, quantitative data analysis, data mining, artificial intelligence and machine learning that can be used to enhance FINRA’s surveillance capabilities.

FINRA Staff Liaison:
Christine Sakach

Qualification Examination Content Committees (10 Committees)—each committee is composed of 12 to 30 members drawn from the industry and SRO staff. SRO members include staff from the Municipal Securities Rulemaking Board (MSRB), Chicago Board Options Exchange (CBOE), New York Stock Exchange (NYSE) and FINRA. Larger committees meet in smaller groups based on content expertise needed at a meeting. The committees advise FINRA’s Testing and Continuing Education (TCE) Department regarding the content of all qualifications examinations. The current committees are composed as follows:

Qualification Examination Content Committee Industry Members SRO Members Meetings per year
Series 14 – Compliance Officer 12 2 4
Series 16/86/87 – Research & Supervisory Analyst 20 2 4
Series 23/24/26/39 – Principal Examinations 18 3 4
Series 27/28 – FinOp Principal 12 2 3
Series 4/9/10 – Sales Supervisor/Options Principal 22 5 4
Series 57 – Securities Trader 14 2 3
Series 6/7/22/82 – Sales Representative 50 5 4
Series 79 – Investment Banking 16 1 4
Series 99 – Operations Professional 25 1 3
SIE – Securities Industry Essentials 24 4 5

FINRA Staff Liaison:
John Kalohn

Rule 4210 Committee—composed of 11 member firms and six representatives from the SEC, Board of Governors of the Federal Reserve System, CBOE and Options Clearing Corporation. The committee advises FINRA’s Risk Oversight and Operational Regulation Department with respect to the industry’s margin and credit practices and issues relating to Rule 4210 (Margin Requirements).

FINRA Staff Liaison:
Kris Dailey