Outside Activities Requirements Rule Proposed

Features

• Outside Activities Requirements Rule Proposed 
  FINRA filed a rule proposal with the SEC to streamline and reduce unnecessary burdens regarding existing requirements that address the outside activities of member firms’ associated persons. The proposal would replace two rules—Rules 3270 and 3280—with Rule 3290, which would amend the requirements to focus on outside activities that potentially present heightened risks for members and the public. Part of our FINRA Forward rule modernization initiative, the proposal reflects feedback we received from Regulatory Notice 25-05 last March. The SEC will invite comment on the proposed rule change via its website when the proposal is published in the Federal Register. 
   
• FINRA Seeks Input on Proposal to Help Firms Protect Customers From Fraud  
  FINRA requested public comment on a rule proposal to address the growing problem of fraud and 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. Please see Regulatory Notice 26-02, published on Jan. 8. The comment period closes on March 9. 
   
• Improvements to ‘Interpretation Handbook’ Continue 
  FINRA updated our Interpretations to the SEC’s Financial and Operational Rules to incorporate additional existing SEC guidance. This continues our efforts to modernize this key resource, otherwise known as the Interpretation Handbook, which helps member firms comply with the SEC’s rules for calculating net capital, protecting customer assets, recordkeeping, and financial reporting. These latest updates are available here. 
   
• 2026 Joint Compliance Outreach Program 
  FINRA, the SEC, and MSRB will jointly host the Joint Compliance Outreach Program for Municipal Advisors, Dealers, and Other Market Professionals on Jan. 21-22, 12-5 p.m. ET. FINRA President and CEO Robert Cook, SEC Chairman Paul Atkins, SEC Commissioner Hester Peirce, and MSRB Chairman Mark Kim will deliver remarks at this free virtual event, which will allow municipal market participants to hear from FINRA, SEC, and MSRB staff on timely regulatory, technology, and compliance matters for municipal advisors and dealers. You may register here. 
   
• SEC Compliance Outreach Event for Small Firms on Regulation S-P 
  The SEC will hold a hybrid event on Jan. 22,11 a.m.-12:30 p.m. ET, for small firms regarding the 2024 adoption of amendments to Regulation S-P. You must register in advance for in-person attendance. More information is available here. 
   
• ICYMI: FINRA Moves to Overhaul Day Trading Margin Provisions 
  FINRA filed a proposed rule change with the SEC to replace the current day trading margin provisions with updated intraday margin standards. The rule change would eliminate the longstanding provisions for designating pattern day traders and the $25,000 minimum equity requirement while also reducing the risks of intraday trading exposures more broadly. This filing advances the FINRA Forward Rule Modernization initiative to update requirements, facilitate innovation, and reduce unnecessary burdens. Comments are due to the SEC by Feb. 4. 
   
• ICYMI: FINRA CEO Addresses SEC Decision to Retire Global Research Analyst Settlement 
  Robert Cook, FINRA President and CEO, published a blog on Jan. 6 discussing the SEC’s recent consent to amendments that terminated the undertakings imposed by the 2002 Global Research Analyst Settlement (GRAS). Cook explains that the GRAS restrictions, which originally applied to 12 firms that published biased research during the dot-com era more than 20 years ago, were always intended as temporary measures until a comprehensive regulatory framework could be established for all firms. 
   
• ICYMI: Updated Policy for Requesting Annual Reports Extensions of Time 
  FINRA is phasing in a new Annual Reports Extension of Time Request Policy to update the information required from firms and their auditors when making extension requests. Please see Regulatory Notice 25-19, published Dec. 29, for further information. 
   
• ICYMI: Final Renewal Statements Now Available 
  Final Statements are now available in E-Bill for broker-dealer and investment adviser firms participating in FINRA’s 2026 Annual Renewal Program. The Final Statements confirm or reconcile actual renewal fees owed as of Jan. 1, 2026, and reflect adjustments based on changes to registrations, reporting statuses, or notice filings made after Preliminary Statements were issued in November 2025. See Regulatory Notice 26-01, published Jan. 2, for guidance on reviewing, reconciling, and responding to Final Statements in E-Bill, as well as accessing renewal reports in the Central Registration Depository (CRD) and Investment Adviser Registration Depository (IARD) systems. 
   
• ICYMI: Updated FAQs on Electronic Distribution of Institutional Communications 
  In response to questions received in connection with the FINRA Forward Rule Modernization initiative, we have updated our Frequently Asked Questions to provide firms with additional guidance on the application of Rule 2210 (Communications with the Public) to the distribution of institutional communications. 
   
• ICYMI: Required Annual Review of Contact Information  
  Firms are required to complete an annual review of their contact information within the first 17 business days of each calendar year. This year, the deadline to complete the review in the FINRA Contact System (FCS) is Jan. 28. FCS can be accessed by logging into FINRA Gateway. As part of this review, firms should review all contacts and update as needed, per Rule 4517.