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Update: FINRA Board of Governors Meeting

From:

Robert W. Cook, FINRA President and CEO

To:

FINRA Member Firms

Date:

Wednesday, December 9, 2020

FINRA’s Board of Governors met virtually last week, and I am pleased to share some updates from our discussions.

The Board approved three rulemaking items, which are listed below. As is customary for the last meeting of the year, the Board discussed FINRA’s finances and other long-term planning. The Board reviewed FINRA’s financial performance from 2020 and approved our 2021 proposed budget, scheduled to be published in the coming months. In addition, the Board conducted its annual review of FINRA’s Financial Guiding Principles, which are the backbone of our long-term financial planning and guide how we manage our resources to achieve our mission.

The Board also nominated several members to the Small Firm Advisory Committee (SFAC) and to the National Adjudicatory Council (NAC), and also received an update on recently concluded Regional Committee and SFAC elections. The new members of all three groups will be announced via a mid-December Election Notice.

For more information about the discussions that took place during the December FINRA Board of Governors meeting, please watch the December 2020 Board Report video. Our next meeting is March 3 – 4. More information regarding the Board's operations, including the membership and responsibilities of its committees, is available at www.finra.org/governance

Sincerely,


Robert W. Cook
President and CEO


Rulemaking Items Approved at the December 2020 Board Meeting

Proposed Amendments to Enhance the Continuing Education Program 
The Board approved filing with the SEC proposed amendments to FINRA Rules 1210 and 1240 to enhance FINRA's continuing education (CE) program. The amendments would, among other things, require registered persons to complete the Regulatory Element of the CE program every year rather than every three years, and would allow individuals who terminate their registrations to reregister for an extended period without retaking the required examinations if they maintain their CE requirements during this period.

Proposed Amendments to FINRA Rules Regarding Security-Based Swaps 
The Board approved filing with the SEC proposed amendments relating to the application of FINRA rules to members’ activities and positions in security-based swaps, in light of SEC rules for security-based swap dealers, including  business conduct, margin, and financial and operational requirements.

Proposal to Establish a Process to Appeal Staff Statutory Disqualification Determinations 
The Board approved the filing with the SEC proposed amendments to the FINRA Rule 9000 Series to establish a process to appeal statutory disqualification determinations made by FINRA staff. The new process would provide individuals with the ability to challenge a FINRA decision that the person is subject to a statutory disqualification, without needing the support of a firm to do so.

Visit FINRA’s website for more information about FINRA’s rulemaking process.