Regulatory Notice 16-27

FINRA Announces Changes Relating to Composition, Terms of Members and Election Procedures for the National Adjudicatory Council

Effective Date: August 11, 2016

Executive Summary

The SEC has approved FINRA’s proposed rule change to amend the By-Laws of FINRA Regulation, Inc. (FINRA Regulation By-Laws) to expand the size of the National Adjudicatory Council (NAC) by one member and apply the requirement that the NAC have more Non-Industry Members than Industry Members, lengthen the terms of future NAC members by one year, and update the process used for sending and counting ballots in the event of a contested election to fill vacancies for certain Industry Members.

The revised FINRA Regulation By-Laws are available on FINRA’s website. They take effect on August 11, 2016.

Questions concerning this Notice should be directed to:

  • Alan Lawhead, Vice President and Director – Appellate Group, Office of General Counsel (OGC) at (202) 728-8853; or
  • Gary Dernelle, Associate General Counsel, OGC, at (202) 728-8255.