Update: FINRA Board of Governors Meeting
July 9, 2015
Dear Executive Representative:
The FINRA Board of Governors met this week to discuss a number of issues, including three rulemaking items (detailed below). You can hear more about these rulemaking items—and other actions by the Board—in our video report.
As usual, your comments are welcome.
Richard G. Ketchum
Chairman and CEO
Rulemaking Items Discussed at the July 2015 Board Meeting
Coordination with the MSRB
The Board authorized FINRA to file with the SEC a proposal to adopt a FINRA rule regarding coordination between FINRA and the Municipal Securities Rulemaking Board (MSRB), as required by the Exchange Act. The proposed rule would provide that FINRA will: (1) request guidance from the MSRB in interpretation of the MSRB rules; and (2) provide information to the MSRB about enforcement actions and examinations pertaining to municipal securities brokers, municipal securities dealers, and municipal advisors conducted by FINRA, so that the MSRB may: (i) assist in such enforcement actions and examinations; and (ii) evaluate the ongoing effectiveness of the MSRB rules.
Fixed Income Pricing Disclosure
The Board authorized the publication of a Regulatory Notice requesting comment on a revised proposal to require firms to disclose pricing information on customer confirmations for trades in corporate and agency securities with non-institutional customers, where the firm’s principal trade and the customer trade both occur on the same trading day.
National Adjudicatory Council Changes
The Board authorized FINRA to file with the SEC proposed amendments to the FINRA Regulation By-Laws concerning the National Adjudicatory Council (NAC). Specifically, the amendments would include (1) expanding the size of the NAC to 15 members, with the number of non-industry members exceeding the number of industry members; and (2) lengthening the term of office for future NAC members to four years.