Advisory Committees

FINRA has 15 advisory committees that provide feedback on rule proposals, regulatory initiatives and industry issues. More than 160 industry members and 35 non-industry members serve on these committees. The advisory committees meet in-person or via teleconference typically between two and five times a year.

Capital Acquisition and Placement Broker Committee

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The Capital Acquisition and Placement Broker Committee is composed of representatives of current FINRA CAB member firms, firms that qualify for CAB status but have retained full FINRA membership and firms that are not eligible for CAB status under the current definition but have similar business models. The committee advises FINRA on regulatory and public policy issues arising from the activities of member firms that have elected or are considering electing to be capital acquisition brokers (“CABs”). The committee also makes recommendations on new initiatives, new rules and proposed changes to current rules related to CABs.

Membership effective June 1, 2019

Clearing Firm Advisory Committee

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The Clearing Firm Advisory Committee is composed of member firm representatives from clearing firms, with introducing firm representatives regularly invited to participate. The committee is a forum for clearing and introducing firms to advise FINRA on issues arising from member firms’ activities relating to the clearance, carrying and settlement of securities, including issues, practices and activities affecting or relating to small member firms, such as their access to clearance and settlement services. The committee also assists FINRA in identifying and promoting best practices regarding clearing and carrying activities and making recommendations regarding FINRA rules relating to the clearance, carrying and settlement of securities. In addition, the committee assists FINRA in identifying and promoting best practices regarding clearing and carrying activities and making recommendations regarding FINRA rules relating to the clearance, carrying and settlement of securities.

Membership effective May 31, 2019

Corporate Financing Committee

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The Corporate Financing Committee is composed of member firm representatives. The committee advises FINRA on regulatory and public policy issues arising from firms' capital-raising activities, including firms' investment banking services. These services include, but are not limited to underwriting terms and arrangements in public offerings, private placements and distribution of securities of other member firms and affiliates. The committee also advises FINRA on offerings involving corporate equities, debt, closed-end investment companies, real estate investment trusts and direct participation programs, and on issues arising from member firms' research activities.

Membership effective June 1, 2019

Economic Advisory Committee

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The Economic Advisory Committee (EAC) is composed of economic and finance experts with a wide range of expertise, including banking, credit markets, market structure, international finance and behavioral economics. The committee advises FINRA on academic research and macroeconomic developments that may impact its regulatory programs. EAC members present original research and discuss economic developments to better inform FINRA initiatives.

Membership effective June 1, 2019

Financial Responsibility Committee

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The Financial Responsibility Committee is composed of member firm representatives. The committee advises and makes recommendations to FINRA primarily about FINRA and the Securities Exchange Commission's rules and policies affecting the financial and operational activities of firms. The committee also provides input on proposed FINRA rules and initiatives, or suggests amendments to existing FINRA rules, related to financial responsibility, clearance and settlement of securities transactions or other operational matters.

Membership effective June 1, 2019

Fixed Income Committee

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The Fixed Income Committee is composed of member firm representatives. The committee advises and makes recommendations to FINRA about regulatory initiatives, rules and policies and public policy issues involving debt securities, including municipal securities and municipal advisory activity. The committee addresses a broad range of issues concerning fixed income transactions, fixed income market participants, transaction reporting, transparency and pricing, suitability, advertising and disclosure, debt mark-ups and commissions, conflicts of interest, debt research, and training and supervision of persons engaged in debt securities business activities.

Membership effective June 1, 2019

Investor Issues Committee

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The Investor Issues Committee is composed of subject matter experts, including academics, consumer advocates, former securities regulators, institutional investors and individuals affiliated with non-broker-dealer asset management firms. The committee advises FINRA staff on matters that significantly affect individual and institutional investors, including proposed rulemaking, policy initiatives and other issues, and to help inform FINRA's economic analysis from the perspective of investors. In addition, the committee routinely reviews rule proposals and regulatory initiatives before they are brought before the FINRA Board.

Membership effective June 1, 2019

Large Firm Advisory Committee

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The Large Firm Advisory Committee is composed of the senior compliance officers of FINRA's largest member firms. The committee routinely reviews rule proposals and regulatory initiatives before they are brought before the FINRA Board. In addition, the committee advises FINRA regarding the effect of current and proposed securities rules and regulations—including FINRA rules—on members engaged in retail and institutional brokerage and investment banking activities. The committee also assists FINRA in identifying and promoting best practices regarding broker-dealer compliance activities.

Membership effective June 1, 2019

Market Regulation Committee

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The Market Regulation Committee is composed of industry and non-industry representatives. The committee advises FINRA on market regulation and trading issues. The committee provides input and perspective on proposed rule changes and other initiatives relating to quotations, executions, equity trade reporting, short sales and trading practices. Committee members also provide input on the administration of various FINRA market regulation and trade reporting systems, such as the Trade Reporting Facilities, the Order Audit Trail System and the Alternative Display Facility, as well as national market system plans. Committee members may also serve on FINRA hearing panels that hear issues related to market regulation and trading.

Membership effective June 1, 2019

Membership Committee

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The Membership Committee represents a cross-section of the securities industry, including representatives from medium-size member firms and member firms that are independent dealers or are affiliated with insurance companies. It routinely reviews rule proposals and regulatory initiatives before they are brought before the FINRA Board. In addition, the committee's responsibilities include, but are not limited to, providing insight on industry trends, issues and needs regarding regulatory compliance; assistance in identifying and promoting sound compliance practices; advice on FINRA's regulatory systems; and ideas for compliance offerings and educational programs to meet firm needs.

Membership effective June 1, 2019

National Arbitration and Mediation Committee

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The National Arbitration and Mediation Committee (NAMC) makes recommendations to FINRA regarding recruitment, qualification, training, and evaluation of arbitrators and mediators. The NAMC also makes recommendations on rules, regulations and procedures that govern the conduct of arbitration, mediation, and other dispute resolution matters before FINRA.

The NAMC members include investors, securities industry professionals and FINRA arbitrators and mediators. A majority of the NAMC members and its chair are non-industry representatives. This diverse composition ensures a neutral approach in the administration of Dispute Resolution's forum, promoting fairness to all parties.

Membership effective June 1, 2019

Operations Advisory Committee

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The Operations Advisory Committee is composed of member firm representatives. The committee advises FINRA on securities industry operational trends and their potential impact on products, controls and regulation. The committee also provides input on the potential effect proposed FINRA rules may have on the industry particularly with respect to the cost and impact of implementation from an operational and technology perspective. The committee advises FINRA on global clearance, settlement, data standards and other back office issues and provides insights on the impact to the industry in relation to systems managed by the Market Operations business unit, including but not limited to the Alternative Display Facility and Trade Reporting and Compliance Engine (TRACE).

Membership effective June 1, 2019

Public Communications Committee

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The Public Communications Committee is composed of member firm representatives. The committee advises FINRA on matters regarding proposed changes, interpretive guidance and the implementation of FINRA rules governing member communications with the public, including communications concerning registered investment companies and variable insurance products, and informs the FINRA staff on matters concerning emerging communications technologies.

Membership effective June 1, 2019

Small Firm Advisory Committee

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The Small Firm Advisory Committee (SFAC) is composed of ten members – 5 elected and 5 appointed – all senior executives of small firms. It exists to ensure that issues of particular interest and concern to small firms are effectively communicated to and considered by FINRA. The SFAC also routinely reviews rule proposals and regulatory initiatives before they are brought before the FINRA Board of Governors. FINRA’s three small firm representatives to the Board of Governors serve as ex-officio, non-voting members of the SFAC.

You may contact SFAC members directly by visiting the Small Firm Advisory Committee web page.

Membership effective June 1, 2019

Uniform Practice Code Committee

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FINRA's Uniform Practice Code (UPC) Committee is composed of member firm representatives. The committee advises and makes recommendations to FINRA on issues relating to the UPC and over-the-counter (OTC) market trading, processing and operations. For example, the committee considers issues related to the clearance and settlement of OTC securities transactions, FINRA's Rule Series on Clearly Erroneous Transactions, and UPC corporate actions processing issues.