Update: Board of Governors March Meeting

March 12, 2026

The FINRA Board of Governors met last week in New York. It was the first meeting for Tim Carter, Dan Gallagher, and Heather Traeger, who were recently appointed as Governors along with Rostin “Russ” Behnam. I am pleased to share several updates from the meeting. 

Rulemaking

The Board approved: 

  • a proposal to shorten the waiting periods to retake FINRA qualification exams.
  • a proposal to deliver electronically requests for information and testimony to member firms through our compliance platform FINRA Gateway. The proposal supports modern communication practices and also recognizes that all member firms already use our systems for registration and other compliance functions.
  • 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.
  • a proposal to adjust our reconciliation requirements for certain alternative investments to conform with no-action relief recently granted by the SEC for those investments. The proposal would also expand upon our recently published guidance.
  • a proposal to amend our 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 five proposals reflect feedback we received on our FINRA Forward rule modernization initiative, which was the subject of a new blog by FINRA Chief Legal Officer Robert Colby detailing our progress to date as well as upcoming priorities. Our new Quarterly Regulatory Policy Agenda also offers an overview of our current areas of focus, active rule filings, and recently approved or immediately effective rule filings.

Governance and Oversight

The Board received several briefings as part of its oversight of management and the administration of FINRA’s work. This included its annual briefing on our examinations and investigations as well as an update on enhancements to our enforcement program from Executive Vice President of Enforcement Bill St. Louis, who also has outlined these changes in a recent blog. In addition, the Board received briefings on FINRA’s cyber and information security and the ongoing reorganization of our regulatory oversight functions and market services into two new groups: Regulatory Operations and Market & Regulatory Services. 

Informed by FINRA’s Financial Guiding Principles, the Board also approves all major financial decisions for the organization. As is customary for the first meeting of the year, the Board approved the allocation of prior-year fine monies to various initiatives. Fines are collected and accounted for separately from monies designated in our operating budget, and their use is subject to special governance procedures, use restrictions, and transparency requirements. As part of our broader approach to financial transparency, we will release details about the allocations in the upcoming Report on the Use of 2025 Fine Monies to be published on FINRA’s website.

More information about the Board’s role and operations, including membership and responsibilities of its committees, is available here. 

Before I close, I would like to encourage you to attend our 2026 Annual Conference, which will take place May 12-14 in Washington, DC. This event will feature discussions on timely regulatory and compliance topics and provide you with an exceptional opportunity to learn from FINRA staff and interact with industry peers and experts. 

Sincerely,

Robert W. Cook

FINRA President and CEO