Features FINRA Moves to Align Performance Projection Requirements FINRA filed proposed amendments to Rule 2210 (Communications with the Public) to better align the regulatory requirements for broker-dealers and investment advisers that present performance projections in written communications to investors. In response to our FINRA Forward notices on rule modernization, commenters requested greater harmonization between broker-dealer and investment adviser requirements. The proposed amendments would create a narrowly tailored exception to Rule 2210 to permit the presentation of projected performance or targeted returns when member firms meet specified conditions. These include adopting policies and procedures limiting who can receive the performance projections or targeted returns; having a reasonable basis for the criteria and assumptions made in calculating the projections or targeted returns; and providing specified information. The proposal was filed with the SEC on Feb. 10 and will be published for comment in the Federal Register in the near future. New Guidance on Use of Negative Consent to Transfer or Assign Customer Accounts FINRA issued Regulatory Notice 26-03 to reduce burdens and guide practices regarding the bulk transfer or assignment of customer accounts by negative consent. The notice, published on Feb. 6, is part of our FINRA Forward initiative to support member firm compliance and addresses feedback we received on modernizing our rules and guidance to reflect modern business practices. Effective April 1, where appropriate under the circumstances, members may use negative consent letters without obtaining the staff’s “no objection” to the proposed transfer or assignment of customers’ accounts by negative consent. To empower member compliance, the notice describes our previous guidance regarding the use of negative consent and sets forth effective practices for the use of negative consent in future bulk transfers and assignments. FINRA Makes Revised Communications Pilot Permanent Following a successful six-month pilot in which more than half of eligible firms participated, FINRA will now allow firms to upload for review communications that have been revised to comply with applicable standards without incurring an additional filing fee. To qualify, firms must meet certain conditions, such as limiting their revisions to those identified by FINRA’s Advertising Regulation Department in the original review letter. Visit this page for more information. Investor Insights on ‘Investment Group’ Imposter Scams, Funds of Funds, and More We invite you to explore several recent Investor Insights on timely topics. Firms are welcome to share these following articles and others with customers. Social media “investment group” imposter scams are surging. These scams target investors online, often by promoting an investment group or club. Read this Investor Insights for tips to avoid becoming a victim. While funds of funds can provide broader diversification than investing in a single mutual fund, they may carry higher fees and other risks. This Investor Insights outlines factors to consider before investing in them. This Investor Insights describes the unique risks that come with using credit cards—directly or indirectly—to fund investments.
ICYMI: Cook on Facilitating E-Delivery While Preserving Investor Choice The FINRA Board recently approved updates to requirements for how broker-dealers deliver investor notices, disclosures, and other communications that are mandated by FINRA rules. In a blog published Feb. 3, FINRA President and CEO Robert Cook detailed how, once effective, these updates would permit member firms to make e-delivery their default delivery method, while preserving the ability of investors to choose paper delivery. Under FINRA's updated approach, member firms would be permitted to make e-delivery the default, subject to specified conditions to ensure customer protection and choice, such as providing customers with appropriate notice and an opportunity to choose to receive paper delivery and requiring firms to remediate e-delivery failures and establish other policies and procedures. To implement this new delivery framework, FINRA plans to file proposed rule changes with the SEC, publish related guidance in a Regulatory Notice, and monitor how the new approach works in practice. ICYMI: FINRA Cybersecurity Alert: Gladinet CentreStack and TrioFox Vulnerabilities Member firms should be aware of multiple critical vulnerabilities in Gladinet’s CentreStack or TrioFox file sharing and collaboration software applications, which threat actors are actively exploiting to gain unauthorized access and remote control of organizational systems. FINRA recommends sharing the related Cyber Alert we published Jan. 29 with information technology and information security personnel—as well as any third-party vendors that may use these Gladinet applications—to identify whether your firm is impacted and take immediate steps to protect your environments.
|
Regulatory Information, Upcoming Deadlines, Effective Dates |
New Proposal on Performance Projections: FINRA filed proposed amendments to Rule 2210 (Communications with the Public) to better align the regulatory requirements for broker-dealers and investment advisers that present performance projections in written communications to investors. See feature above for more details. Use of Negative Consent to Transfer or Assign Customer Accounts: FINRA issued new guidance regarding the bulk transfer or assignment of customer accounts by negative consent. Effective April 1, where appropriate under the circumstances, members may use negative consent letters without obtaining the staff’s “no objection” to the proposed transfer or assignment of customers’ accounts by negative consent. See feature above for more details.
Reminders Corporate Financing Amendments: FINRA proposed amendments to Rules 5110 (Corporate Financing Rule—Underwriting Terms and Arrangements) and 5123 (Private Placements of Securities). The proposed amendments were published in the Federal Register. Comments are due to the SEC by Feb. 20. Proposed Rule on Outside Activities Requirements: 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 proposed amendments were published in the Federal Register. Comments are due to the SEC by Feb. 24. Third-Party Vendor Request: FINRA requests that firms submit information on their vendors and banks via the 2026 Third-Party Vendor Request form in FINRA Gateway ™ by March 4. Regulatory Notice on Addressing Fraud: FINRA requested comment on a proposed rule to help firms protect their customers from fraud and financial exploitation. Comments are due by March 9. Codes of Arbitration Procedure: FINRA amended its Codes of Arbitration Procedure to accelerate the processing of arbitration proceedings for parties who qualify based on their age or health condition. The amendments become effective March 30, as detailed in Reg. Notice 25-18 published Dec. 9, 2025. TRACE Reporting for BD/IAs: FINRA has amended Rule 6730 to allow firms that operate as both broker-dealers and investment advisers (BD/IAs) to report allocations of aggregate orders to multiple managed customer accounts in a single TRACE report, rather than filing separate reports for each account allocation. The optional streamlined reporting alternative takes effect June 8, as detailed in Reg. Notice 25-17 published Dec. 4, 2025.
|
Disciplinary Actions |
- FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The January 2026 Monthly Disciplinary Actions are available here.
|
Education and Compliance Programs |
|
Resources |
Member Firm Hub – Latest guidance, resources, educational opportunities and more. FINRA Forward – An overview of our work in action for becoming more effective and efficient at pursuing our mission is available on FINRA.org. The webpages include information and videos about our efforts to modernize our rules, empower member firm compliance, and combat cyber and fraud threats. Involvement and Election Process – How to engage with FINRA to help carry out our mission of protecting investors and safeguarding market integrity. Members can contribute their unique perspectives and skillsets with rotating terms on FINRA committees and other opportunities. Submit an indication of interest to be considered to join a FINRA advisory committee or speak at a FINRA event by clicking here. Membership Application Program (MAP) Tools – Guidance and other resources to help current members prepare for their continuing membership application (CMA) and new applicants prepare for a new member application (NMA). FINRA Unscripted – Monthly podcast on a range of topics important to FINRA members and other stakeholders. Investor Insights – Feature articles on timely topics for investors, which firms are welcome to share with customers. |
Follow FINRA |
|
About FINRAFINRA is a not-for-profit organization dedicated to investor protection and market integrity. FINRA regulates one critical part of the securities industry—member brokerage firms doing business with the public in the U.S. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org. |
Regulatory Contacts
FINRA By-Laws require member firms to maintain an email account on behalf of their executive representatives, to facilitate firm notification of important information. In light of this, requests from executive representatives to be removed from this email list cannot be honored. Firms wishing to change the name or email address of their executive representative or designated assistant should use the FINRA Contact System: http://www.finra.org/FCS. SubscribersYou received this message because you are currently subscribed to the email subscription list on the FINRA website. To update, use our "update information" or "unsubscribe" forms located at http://www.finra.org/Industry/Subscriptions |
