FINRA Annual Conference Speakers Emphasize Value of SRO Model

Features

• FINRA Annual Conference Speakers Emphasize Value of SRO Model
  The benefits of self-regulation for the brokerage industry were a key theme at FINRA’s 2026 Annual Conference in Washington, DC, this week. “I’m a firm believer in the self-regulatory organization model,” FINRA Board Chairman Scott Curtis, who is Chief Operating Officer of Raymond James Financial, stressed today during a conversation with FINRA President and CEO Robert Cook about the Board’s priorities and FINRA Forward.
  
  “Our commitment is that we really want to be a forward-thinking regulator who is responding to the changing needs of the marketplace,” Cook said. “To do that though, effectively, we need the input and engagement of all of you. That’s the only way that this model really works.”
  
  On Tuesday, Cook participated in sessions with SEC Chairman Paul Atkins and CFTC Chairman Michael Selig, focusing on both agencies’ priorities, market modernization, and the evolving role of self-regulatory organizations (SROs). “I view SROs as being a very important part of our overall regulatory structure,” Chairman Atkins told Cook.
  
  Meanwhile, in opening remarks, Chairman Selig discussed a unique advantage of SROs. “Modern financial markets are too complex, too fast moving and too interconnected to be effectively overseen by government agencies alone,” he said. “That’s precisely why self-regulatory organizations exist and continue to matter.”
  
   
• New Blog Spotlights FINRA’s Rapid Remediation Program
  FINRA is building on the success of our Rapid Remediation program to help member firms identify and mitigate more issues before they escalate, FINRA Executive Vice President and Head of Surveillance Feral Talib discusses in a May 11 blog. The program, which has been in place for nearly 10 years, enables FINRA to share observations across specific scenarios with member firms, so they can quickly rectify compliance gaps, technical glitches, and other issues. As part of FINRA Forward, we added three new surveillance patterns, which have already resulted in the remediation of 602 alerts in 2025 and 162 alerts in the first quarter of 2026 alone. “We believe that working with our member firms to safeguard market integrity is more impactful than identifying problems from the sidelines,” Talib notes. “We all benefit from smooth market operations, and we will continue to partner with our members in helping all of us achieve this goal.”
  
   
• FINRA Unscripted Episode on Exam Program Enhancements
  In the most recent episode of our FINRA Unscripted podcast, FINRA leaders explore the changes reshaping the examination program: streamlined first firm exams for lower-risk firms, extended exam cycles where warranted, more targeted data requests, and advance notice about exam timing.
  
   
• ICYMI: FINRA Forward Report Highlights Year of Progress
  One year in, FINRA is delivering on FINRA Forward. Our new report outlines our progress, highlights some of the concrete actions we have taken since launching FINRA Forward in the spring of 2025, and looks ahead as we enter the initiative’s second year. FINRA Forward is part of our ongoing commitment to continuous improvement across all of our programs. As we build on the work we completed over the past year, we will continue to actively seek input from member firms, the investing public, and other stakeholders. We invite you to read the FINRA Forward: A Year of Progress report here and visit these pages on FINRA.org to stay updated on the latest FINRA Forward initiatives.
  
   
• ICYMI: Enhancements to Short Interest Reporting Proposed
  FINRA proposed amendments to our short-interest reporting framework to enhance transparency and strengthen regulatory oversight of SEC Regulation SHO compliance. The proposal involves two key components: amendments to FINRA Rule 4560 (Short-Interest Reporting) and adoption of new FINRA Rule 4321 (Allocations of Fail to Deliver Positions). The proposed amendments to Rule 4560 would increase both the frequency and granularity of short-interest data collected and disseminated by FINRA, making the information more useful for market participants and regulators. In addition, new Rule 4321 would require members to report to FINRA on a monthly basis their daily allocations of SEC Regulation SHO Rule 204 fail to deliver positions to correspondent firms. Comments will be due to the SEC 21 days after the proposal’s publication in the Federal Register. 
  
   
• ICYMI: FINRA Addresses Comments on Outside Activities Proposal
  On May 1, FINRA submitted a response to comments on our proposal to streamline and reduce unnecessary burdens regarding existing requirements that address the outside activities of member firms’ associated persons, and we contemporaneously filed a partial amendment to the proposal. Also on May 1, the SEC instituted proceedings to determine whether to approve or disapprove the proposal, as modified by the partial amendment. Comments are due to the SEC by May 27, and rebuttal comments are due to the SEC by June 10.
• ICYMI: Fees to Cover CAT Costs Proposed
  FINRA filed a proposed rule change effective April 28 to establish industry member fees for funding reasonably budgeted costs of the Consolidated Audit Trail (CAT) over the next eight months. The proposed fee rate is set at $0.000001 per executed equivalent share and covers the period from May 1 through December 31. 
  
  In addition, FINRA filed a separate proposed rule change, also effective April 28, to establish a fee assessment called “Historical CAT Assessment 1A” to recover certain unpaid historical costs associated with the CAT. These costs were incurred prior to January 1, 2022, but were not fully collected through the previous Historical CAT Assessment 1. The proposed fee rate is set at $0.000002 per executed equivalent share. 
  
  These filings were submitted pursuant to CAT LLC’s decision to establish such CAT fees, to be implemented by FINRA and other CAT Plan Participants. For both fees, billing will begin in June, with the first invoice calculated based on May transactions.
• ICYMI: FINRA Modernizes Filing Form for Public Offerings
  As part of FINRA Forward, we launched a modernized filing form to reduce member firm compliance costs and streamline submissions. Developed in response to industry feedback, the new form pre-populates data from publicly available SEC filings, validates submission completeness, and delivers a simplified filing experience. The new form is now available in the Public Offering System.
• ICYMI: New FAQ Clarifies How to Report Trades Against Non-Fiat Currency Assets
  FINRA published a new FAQ to address how members should report the price of a trade for a security against an asset that is not a fiat currency. It clarifies that all trades must be reported to FINRA in U.S. dollars, including in situations where a non-security crypto asset is exchanged for a security. The FAQ, entitled Q101.14, is available here.
  
   
• ICYMI: FINRA Issues Advisory on Corporate Action Announcements
  FINRA issued a Uniform Practice Code advisory on May 5 reminding member firms to consult the FINRA Daily List, rather than third parties, for corporate action announcements regarding over-the-counter equity securities. There have been recent instances of market confusion resulting from the use of an ex-date for an over-the-counter equity security corporate action other than the one announced by FINRA on the Daily List. The advisory is available here, and the Daily List is here.
  
   
• ICYMI: New Rule 605 Designated Participant Authorization Form Coming Soon
  In mid-June, FINRA will introduce an updated Rule 605 Designated Participant Authorization Form reflecting changes in connection with the amendments to SEC Rule 605 that will take effect on Aug. 1. As part of FINRA Forward’s ongoing efforts to modernize our technology platforms and streamline regulatory processes, the updated form will be accessible through the FINRA Gateway, replacing the current PDF form that firms email to FINRA. All firms required to produce Rule 605 reports that wish to designate FINRA as their Designated Participant under the Rule 605 NMS Plan must complete this new form. Stay tuned for further updates and announcements.

• FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The April 2026 Monthly Disciplinary Actions are available here.