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Guidance |
Disciplinary Actions
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Upcoming Deadlines and Effective Dates
- FINRA System Changes
- SEC Request for Comment
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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.
Many of the topics referenced in the 2023 Report on FINRA Examination and Risk Monitoring Program will be covered at FINRA’s 2023 Annual Conference. Share diverse perspectives while participating in relevant conference sessions and connect and network with industry peers, FINRA senior leaders and staff. Take advantage of early-bird rates and register now to reserve your spot.
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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 January 2023 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.
SEC Request for Comment
The SEC requests comment on FINRA’s proposal to amend the Codes of Arbitration Procedure (Codes) to make various clarifying and technical changes to the Codes, including in response to recommendations in the report of independent counsel Lowenstein Sandler LLP. Comments are due February 2, 2023. See the Federal Register notice.
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Education and Compliance Programs
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.
Save the date for FINRA’s Senior Investor Protection Conference on March 27, 2023. This event is dedicated to sharing the most up-to-date regulatory information, effective strategies and solutions for protecting senior investors and vulnerable adults. Registration is coming soon.
Register for all of FINRA’s upcoming events:
- FINRA Registration Systems Foundation Training | Virtual
- January 25 – 26 | 12-5 p.m. ET | Virtual (WAITLIST ONLY)
- March 1 – 2 | 12-5 p.m. ET | Virtual (WAITLIST ONLY)
- Senior Investor Protection Conference | March 27, 2023 | Washington, DC | Registration coming soon!
- 2023 Annual Conference | May 16 – 18, 2023 | Washington, DC
- FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program | Washington, DC
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