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Guidance
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Disciplinary Actions
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Upcoming Deadlines and Effective Dates
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Education and Compliance Programs |
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FINRA has published its 2023 Report on FINRA’s Examination and Risk Monitoring Program to provide member firms with key insights and observations to use in strengthening their compliance programs. The comprehensive report from FINRA’s regulatory operations covers 24 topics, including four new topics relevant to the evolving securities industry.
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Tune into the latest episode of the FINRA Unscripted podcast. On this episode, three Member Supervision senior leaders join us to dig into some of the new and noteworthy regulatory topics in the 2023 Report on FINRA’s Examination and Risk Monitoring Program. Listen to the podcast.
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Guidance
FINRA has issued Regulatory Notice 23-01 to help firms review, reconcile and respond to their Final Statements in E-Bill as well as view the reports that are currently available in the Central Registration Depository (CRD) and Investment Adviser Registration Depository (IARD) systems for the annual registration renewal process.
FINRA’s Renewal Program supports the collection and disbursement of fees related to the renewal of broker-dealer (BD) and investment adviser (IA) registrations, exempt reporting and notice filings with participating self-regulatory organizations (SRO) and jurisdictions.
The deadline to remit payment for any additional amounts owed and to report any discrepancies to FINRA is Jan. 27, 2023.
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Disciplinary Actions
FINRA publishes disciplinary actions to remind registered representatives and firms of specific conduct that violates FINRA rules and may result in disciplinary action. FINRA recently published the December 2022 Monthly Disciplinary Actions.
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Upcoming Deadlines and Effective Dates
Annual Review in the FINRA Contact System due January 26, 2023
Firms are required to complete an annual review of their contact information within the first 17 business days of each calendar year. The deadline to complete the annual review in the FINRA Contact System (FCS) is January 26, 2023. To access FCS, log in to FINRA Gateway. Select the Contacts icon on the left menu then select Perform Annual Review on the right.
Prior to completing the Annual Review, firms should review ALL contacts in FCS and update as needed. This includes updating contact details, removing duplicate entries, checking for typos, and deleting contacts no longer associated to a role in FCS. As a reminder, FINRA Rule 4517 requires firms to update designated contact information promptly upon any material change, verify such information annually and comply promptly with any request for such information via FCS.
The SEC amended Rule 17a-4 on October 12, 2022, to modify the requirements regarding the maintenance and preservation of electronic records, the use of third-party recordkeeping services to hold records, and the prompt production of records. The effective date and compliance date for the amendments are January 3, 2023, and May 3, 2023, respectively. FINRA has prepared a chart that summarizes the most significant changes.
As a result of the changes to the language of the Third-Party Access Undertaking, firms electing to continue using their current third-party access arrangements to comply with Rule 17a-4(f) must ensure that the third-party files new undertakings including the amended language. These new undertakings must be submitted to FINRA by May 3, 2023. Firms are alerted that if they elect to utilize an electronic recordkeeping system, the amendments require that they submit to FINRA either a Third-Party Access Undertaking or a Designated Executive Officer Undertaking.
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Education and Compliance Programs
Register today for the next Small Firm Conference Call on Thursday, January 12, at 4:30 p.m. ET. FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski will be joined by Member Supervision’s Vice President Meredith Cordisco, Vice President Brian Kowalski and Vice President Joe Sheirer to discuss the 2023 Report on FINRA’s Examination and Risk Monitoring Program. Registration is open to all member firms.
FINRA System Changes Related to CE Rule Changes
FINRA is advising firms and industry professionals of resources available to learn about FinPro (Financial Professional Gateway), FINRA Gateway and Classic Central Registration Depository (CRD) changes related to the continuing education (CE) and registration rule changes that became effective Jan. 1, 2023. As a reminder, the rule changes described in Regulatory Notice 21-41 require registered persons to complete CE Regulatory Element annually by Dec. 31, starting in 2023. Additionally, CE participants will receive content tailored to each representative or principal registration category that they hold. Starting in 2023, individuals who fail to complete their Regulatory Element within the prescribed annual deadline of Dec. 31 will be designated as CE inactive.
To learn about related FINRA system changes, firms and industry professionals should watch and review the following resources:
For more information about the securities industry CE transformation, visit the resource page on FINRA’s website.
Register for all of FINRA’s upcoming events:
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