Report From FINRA Board of Governors December Meeting

December 18, 2025

The FINRA Board of Governors held its final meeting of the year December 10-11. The Board approved three rule proposals. It also reviewed FINRA’s 2025 financial performance and approved FINRA’s 2026 budget. More information about FINRA’s finances will be provided in FINRA’s annual financial report and budget summary.

Rulemaking

The Board approved:

  • A proposal to permit member firms to use electronic delivery as the default means of providing information to customers under FINRA rules. The proposal supports modern communication practices and preferences while preserving customers’ ability to choose paper delivery. FINRA plans to file proposed rule changes with the SEC and publish related guidance in a Regulatory Notice.
  • A proposal to better equip member firms to protect customers from financial exploitation. The proposal includes amendments to boost the adoption and usefulness of customers’ trusted contacts and allow member firms greater flexibility to extend temporary holds when they reasonably suspect financial exploitation of a senior or vulnerable adult. It would also offer member firms a new optional shorter temporary hold (a “speed bump”) to protect customers of any age from suspected fraud. FINRA will issue a Regulatory Notice seeking comment on the proposal.
  • A proposal to provide more flexibility for collective trust funds, sometimes referred to as collective investment trusts, to receive IPO allocations under FINRA’s new issue rules. The exemption would treat these pooled investment vehicles, which are generally used as investment options in qualified retirement plans, comparably to other types of pooled investments. We will file the proposal with the SEC. 

All three proposals reflect feedback we received on our rule modernization initiative, part of our FINRA Forward effort to improve our effectiveness and efficiency.

In addition, staff presented an overview of the 2026 Regulatory Oversight Report—a key resource for member firms with insights from FINRA’s regulatory operations programs, including findings and best practices. The Board also received an update on the ongoing outside review of FINRA’s enforcement program as well as the enhancements being made to FINRA’s organizational structure to align to the demands of our mission. This includes the ongoing work to operationalize two new groups: Regulatory Operations and Market & Regulatory Services.

Finally, the Board met with Investment Company Institute President and CEO Eric Pan, who joined the meeting to discuss issues that are top of mind for the asset management industry, including ETF share classes of mutual funds. More information about the Board’s operations, including membership and responsibilities of its committees, is available here. 

Before I close, I would like to thank everyone who participated and congratulate all the winners from our recent Small Firm Advisory Committee (SFAC) and Regional Committee elections, as well as those who were appointed at the Board meeting to serve on the SFAC and the National Adjudicatory Council. These committees are essential for our engagement with our member firms, and they yield valuable insights that inform our regulatory programs. You may find the names of all the winners and appointees in our year-end Election Notice.

Happy Holidays and best wishes for the New Year!

Sincerely,

Robert W. Cook

FINRA CEO