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FINRA Publishes Report on Use of 2020 Fine Monies

June 2, 2021
Volume 22

 
 
guidance

Guidance
  • Updated FAQ
upcoming

Upcoming Deadlines and Effective Dates
  • FINRA Request for Comment
  • SEC Requests for Comment
education

Education and Compliance Programs

FINRA has released its Report on Use of 2020 Fine Monies, which describes how FINRA used the money from fines issued in 2020, in accordance with its Financial Guiding Principles. As detailed in the report, FINRA issued $57 million in fines in 2020.
 

Following discussions with SEC staff, FINRA temporarily withdrew from SEC consideration the rule filing establishing specialized arbitration panels for expungement requests so that FINRA can further consider whether modifications to the filing are appropriate. FINRA posted on its website a statement regarding the withdrawal, as well as an expungement webpage with data on key regulatory initiatives. FINRA continues to take meaningful steps to enhance controls on the existing expungement process in the near term.
 

As announced in Regulatory Notice 20-02, FINRA is conducting a retrospective rule review to assess the effectiveness and efficiency of Rule 4530 (Reporting Requirements). FINRA is asking firms to complete a voluntary survey about their experience with the reporting requirements associated with the rule. Executive representatives will be sent the survey via email on June 8, 2021.
 



Tune in to the latest episode of the FINRA Unscripted podcast. On this episode we’re taking you behind the scenes of this year’s Annual Conference to listen in on the fireside chat between FINRA CEO Robert Cook and FINRA Board Chair Eileen Murray as they talk about everything from return to the office and the future of the workforce to the work of FINRA's Board of Governors and diversity, equity and inclusion. Listen to the podcast.
 

 Guidance

FINRA Amends Eligibility Proceeding Rules - Effective June 1, 2021

As noted in Regulatory Notice 21-09, FINRA has amended and retitled FINRA Rule 9522 (Initiation of Eligibility Proceeding; Member Regulation Consideration; and Requirements for an Interim Plan of Heightened Supervision). Effective June 1, 2021, a member firm that files a MC-400 Application to continue associating with a disqualified person must also include an interim plan of heightened supervision that would be in effect throughout the entirety of the application review process. See General Information on Statutory Disqualification and FINRA’s Eligibility Proceedings for additional guidance, including a sample interim plan of heightened supervision.

Updated FAQ

FINRA has updated the Frequently Asked Questions about Electronic Blue Sheets (EBS) to add a new section on Trade Cancellations and Corrections.
 

 Upcoming Deadlines and Effective Dates

FINRA Request for Comment

FINRA seeks comment on any aspects of our rules, operations and administrative processes that may create unintended barriers to greater diversity and inclusion in the broker-dealer industry or that might have unintended disparate impacts on those within the industry. See Regulatory Notice 21-17 for additional information. The comment period expires June 28, 2021.

SEC Requests for Comment

The SEC requests comment on FINRA’s proposal to adopt a Supplemental Liquidity Schedule, and Instructions thereto, pursuant to FINRA Rule 4524 (Supplemental FOCUS Information). Comments are due June 8, 2021. See the Federal Register notice.

The SEC requests comment on FINRA’s proposal to amend the requirements for Covered Agency Transactions under FINRA Rule 4210 (Margin Requirements) as approved by the SEC pursuant to SR-FINRA-2015-036. The proposed rule change would amend, under FINRA Rule 4210, paragraphs (e)(2)(H), (e)(2)(I), (f)(6), and Supplementary Material .02 through .05, each as amended or established pursuant to SR-FINRA-2015-036. Comments are due June 15, 2021. See the Federal Register notice.

The SEC requests comment on FINRA’s proposal to amend FINRA Rule 1011(p) (“specified risk event”), to correct an inadvertent drafting error and clarify the “final regulatory actions” that are included in the “specified risk event” definition for purposes of the Rule 1000 Series (Member Application and Associated Person Registration). Rule 1011(p) was among the rules approved in SR-FINRA-2020-011. Comments are due June 16, 2021. See the Federal Register notice.
 

 Education and Compliance Programs

Register today for the next Small Firm Conference Call on Tuesday, June 15, 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 Dave Kelley, Keith Bettencourt and Wyatt Hamilton to discuss cybersecurity-related issues affecting the industry, along with effective practices we have observed at firms.

Register for a Report Center Webinar on Thursday,
 June 10, at 3 p.m. ET, that demonstrates the new Cross Market Options Supervision Potential Intrusion Report Card.

Register today for the 2021 Virtual Technology Conference on June 23. This conference showcases the latest technology offerings to our member firms. Technology is transforming the Financial Services industry and FINRA is dedicated to supplying our members with innovative technology designed to protect investors and ensure market integrity.

Register for the Diversified and Carrying & Clearing Member Forum on July 13. Firm Grouping Member Forums are free one-day events designed to provide financial professionals associated with FINRA member firms the opportunity to engage in key discussions with FINRA staff and connect with industry leaders and peers. The forums also include thoughtful discussions around the future landscape of the financial services industry and provide opportunities to meet one-on-one with FINRA Risk Monitoring Analysts, Directors, and Single Points of Accountability to discuss firm-specific questions.

Registration is open for the 2022 FINRA Annual Conference, held on May 16-18 in Washington, DC. We had record-breaking attendance at this year’s event so be sure to register early to reserve your spot. Early bird rates are available.

Register for these upcoming FINRA events:

  • FINRA Institute at Georgetown Certified Regulatory and Compliance Professional Program
    Week I Waitlist | July 18-23, 2021 | Online
  • Advertising Regulation Conference |
    October 14-15, 2021 | Washington, DC
  • Small Firm Conference | October 27-28, 2021 |
    Santa Monica, CA
  • FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program
    Week II | November 14-19, 2021 | Online + In-Person

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