Features - FINRA Proposes Raising Gift Limit
FINRA has filed with the SEC a proposal to increase the limit on gifts its members can give to employees of an institutional customer, vendor, or counterparty. The proposed amendments to FINRA Rule 3220 (the Gifts Rule) would raise the gift limit to $250 from $100 to account for inflation and continue to permit the exchange of business courtesies while helping to guard against excessiveness. Among other modifications to the Gifts Rule, the proposal would substantially codify existing guidance that the rule does not apply to personal gifts, items of de minimis value, promotional or commemorative items, or donations due to federally declared major disasters. It also would make clear that the Gifts Rule does not apply to gifts to individual retail customers. Finally, the proposal would make a conforming change to raise the gift limit to $250 from $100 in Rule 2310 (Direct Participation Programs), Rule 2320 (Variable Contracts of an Insurance Company), Rule 2341 (Investment Company Securities), and Rule 5110 (Corporate Financing Rule – Underwriting Terms and Arrangements). The SEC will publish the proposal for public comment in the Federal Register.
- FINRA Files Amendment for SEC Review of Certain Expulsions and Other FINRA Actions
FINRA has filed with the SEC a proposal to amend FINRA rules to allow for SEC review of certain expulsions of member firms, cancellations of membership, and denials of applications for continued membership of disqualified member firms. Under the change, these disciplinary and other FINRA actions will not become effective until either the SEC has completed its review or the deadline for filing an application for SEC review has passed and no application has been filed. FINRA has proposed that this rule change take effect immediately.
- Key Market Terms for Stressed Times
Bear market… Correction… Dead cat bounce. These are all terms that get bandied about when financial markets hit some turbulence. A recent FINRA Investor Insight, available here, provides a glossary of Wall Street jargon for uncertain times. Firms are welcome to share it and other Investor Insights with customers.
- Warning Signs of Relationship Investment Scams
A recent FINRA Investor Insight discusses the worrisome trend of relationship investment scams, in which bad actors seek to build trust over time before attempting to defraud investors. The article, which describes telltale signs of such scams and offers tips on how to avoid them, is available here. Firms are welcome to share it and other Investor Insights with customers.
- ICYMI: Stephen Luparello Appointed as FINRA Public Governor
Stephen Luparello, who has held several senior regulatory and industry positions throughout his career, has joined the FINRA Board of Governors as a Public Governor. Most recently, Luparello was Managing Director and General Counsel at Citadel Securities. Prior to Citadel, he served as the Director of the SEC’s Division of Trading and Markets. Earlier in his career, Luparello was a partner at WilmerHale where he specialized in broker-dealer compliance and regulation as well as securities litigation and enforcement. He spent 16 years at FINRA and its predecessor, the National Association of Securities Dealers, serving at one point as FINRA’s Vice Chairman.
- ICYMI: Cyber Alert: Phishing Campaign Impersonating FINRA Executives
Firms should be aware of fraudulent emails whose senders are impersonating FINRA executives. These emails are not from FINRA, and firms should delete them and consider blocking their domains. Read the Cybersecurity Alert.
- ICYMI: Cyber Advisory: Potential Endpoint Detection and Response Vulnerability
Member firms that use SentinelOne Endpoint Detection and Response (EDR) protections—and potentially other EDR service providers—should be aware of a vulnerability that could allow threat actors to access publicly accessible servers. A recent Cybersecurity Advisory explains how threat actors exploit this vulnerability and offers guidance for remediating and protecting against this type of attack.
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Regulatory Information, Upcoming Deadlines, Effective Dates |
New Reminders - FINRA Forward – Requests for Comment:
- Rule Modernization: Regulatory Notice 25-04 requests comment in connection with a broad review of FINRA’s regulatory requirements applicable to member firms and associated persons. Comments are due by June 11.
- Webinar on Comment Process: Members can view a FINRA webinar on how to provide comments on the rule modernization proposal, as well as learn about the impact of comment letters and how it is used. Register here to view the on-demand recording.
- Capital Formation: Regulatory Notice 25-06 requests comment on modernizing FINRA rules, guidance and processes to further facilitate capital formation and reduce unnecessary regulatory costs and burdens impacting the capital-raising process. Comments are due by June 18.
- The Modern Workplace: Regulatory Notice 25-07 requests comment on modernizing FINRA rules, guidance and processes for the organization and operation of member workplaces. Comments are due by July 14.
- FinPro to Adopt New Interface: FINRA’s Financial Professional Gateway (FinPro) will update its user interface starting around June 12. Users do not need to take any action to prepare for this transition and can preview the updated interface here.
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Disciplinary Actions |
- FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The May 2025 Monthly Disciplinary Actions are available here.
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Education and Compliance Programs |
Joint Compliance Outreach Program for Municipal Advisors, Dealers, and Other Market Professionals | Hosted by FINRA, the SEC and the MSRB | Nov. 18-19 | Virtual Event | Link to Come |
Resources |
Member Firm Hub – The latest guidance, resources, educational opportunities and more. Comment Process – Watch this on-demand webinar on how to provide comments on rule modernization proposals, as well as to learn about the impact of comment letters and how they are used. Involvement and Election Process – Learn about ways to engage with FINRA to 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 detailed in the Involvement and Election Process Overview. 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 – Find 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 – Listen to our monthly podcast on a range of topics important to the securities industry. |
Follow FINRA |
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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 |
