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New and Improved Fund Analyzer Tool

June 9, 2021
Volume 23

 
 
guidance

Guidance
  • Regulatory Notice
  • Information Notice
  • UPC Advisory
upcoming

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

Education and Compliance Programs

In-person arbitration and mediation proceedings. Beginning August 2, 2021, all FINRA Dispute Resolution Services hearing locations will be open for in-person arbitration and mediation proceedings. Currently, in-person proceedings at the following seven hearing locations are postponed through July 30, 2021: Augusta, Boca Raton, Buffalo, Detroit, Philadelphia, Providence and Wilmington.
 

FINRA has introduced a new and improved Fund Analyzer tool to help investors and financial professionals better understand the impact of fees and potential discounts on mutual funds, exchange-traded funds, exchange-traded notes and money market funds. The Fund Analyzer’s data feed allows individuals to sort through and compare more than 30,000 products and run a wide variety of investment scenarios. The tool’s enhancements enable users to better calculate how a fund’s fees, expenses and discounts impact the value of a fund over time. Users can also access an expanded Help Library, which contains additional details about the tool’s simple and more advanced functions. FINRA will maintain both the current and new versions of the tool while users get acquainted with the tool's new enhancements and data displays.
 



Register today for the 2021 Virtual Technology Conference on June 23. 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. This conference showcases the latest technology offerings to our member firms.
 

 Guidance

FINRA Alerts Firms to Phishing Email Using “gateway-finra.org” Domain Name

FINRA warned member firms of an ongoing phishing campaign that involves fraudulent emails purporting to be from FINRA and using the domain name “@gateway-finra.org.” The email asks the recipient to click a link to “view request” and provide information to “complete” that request, noting that “late submission may attract penalties.” FINRA recommends that anyone who clicked on any link or image in the email immediately notify the appropriate individuals in their firm of the incident. See Regulatory Notice 21-20 for additional information and a sample fraudulent email.

Redesigned eFOCUS System and SEC Security-Based Swap Reporting Requirements; Revised Supplemental Inventory Schedule

To avoid duplication with the SEC’s 2019 FOCUS amendments, FINRA has revised the Supplemental Inventory Schedule (SIS) so that members that file the new FOCUS Report Part II, pursuant to the SEC’s amendments, will no longer need to file the SIS. The SEC’s new FOCUS reporting requirements, and the revised SIS, will apply beginning with FOCUS reports and SIS filings that report on the period ending October 31, 2021, and are required to be filed in November 2021. See Information Notice 6/3/21 for more information on the upcoming changes.

Additionally, FINRA has redesigned its eFOCUS filing system to add certain enhancements and features to improve members’ filing experience. Members that are quarterly filers may access the new system on FINRA Gateway beginning June 24, 2021. The new system will be made available to monthly filers beginning in July 2021. 

UPC Advisory

The following UPC Advisory was published in the last week:

  • UPC #29-21: Seadrill Partners LLC (SDLPQ)

 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.

FINRA is requesting comment on potential enhancements to its short sale reporting program in Regulatory Notice 21-19. FINRA is considering: (1) modifications to its short interest reporting requirements (Rule 4560); (2) a new rule to require that participants of a registered clearing agency report to FINRA information on allocations to correspondent firms of fail-to-deliver positions; and (3) other potential enhancements related to short sale activity.
The comment period expires August
 4, 2021.

SEC Requests for Comment

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.

FINRA Elections

The annual meeting of FINRA firms will take place on or about Wednesday, September 1, 2021, to elect one Large Firm Governor, one Mid-Size Firm Governor, and one Small Firm Governor to the FINRA Board of Governors. Election Notice 6/4/21 announced the FINRA Nominating & Governance Committee nominees to fill these vacancies, and informed individuals not nominated by the Nominating Committee of the procedures for being included as an additional candidate on the ballot for these elections. Petitions for candidacy are due July
 19, 2021.
 

 Education and Compliance Programs

On Thursday, June 10, at 11 a.m. ET, Consolidated Audit Trail, LLC and FINRA CAT, LLC will host an industry webinar to review the steps that Small Firms must take to prepare for reporting to the CAT Transaction System and CAT Customer and Account Information System ("CAIS") by the compliance date of December 13, 2021.

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 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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