Features FINRA Board of Governors Holds June Meeting
The FINRA Board of Governors met in Washington and approved the following rule proposals: - Amendments to FINRA Rule 4311 (Carrying Agreements) – Rule 4311 governs requirements when member firms enter into agreements for the carrying of customer accounts. Among other changes, the amendments would provide greater clarity around tri-party arrangements where one introducing firm contracts through another introducing firm to receive carrying and clearing services. FINRA will publish the proposal for comment in a regulatory notice.
- Amendments to FINRA Rule 2210 (Communications with the Public) – The amendments would better align the regulatory requirements for broker-dealers and investment advisers related to performance projections in written communications to investors. The amendments will be filed with the SEC for approval.
The Board also appointed new members to FINRA’s Advisory Committees, met with SEC Commissioner Mark Uyeda, and received updates on FINRA’s long-term financial planning and FINRA’s enterprise risk management and cybersecurity program. These and other Board updates are detailed in a June 18 letter from FINRA President and CEO Robert Cook to member firms. - Pilot Program Launching for Revised Communications
On July 1, FINRA will introduce a voluntary pilot program to allow firms to upload 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. To receive a “consistent with applicable standards” letter, the revised communication must address all concerns cited in the original review letter. Visit this page for more information on the program, which will run through at least December 31.
- Investor Bulletin on Financial Professional Designations
Not all financial professional designations are the same, and relatively few of them are difficult to obtain. Crucially, they do not equate with registration or licenses. A new Investor Bulletin—published jointly by FINRA, the SEC’s Office of Investor Education and Advocacy, and the North American Securities Administrators Association—describes the key differences between investment professionals who are registered and merely credentialed. Read it here.
- FinPro New Interface Set to Go Live
FINRA’s Financial Professional Gateway (FinPro) will update its user interface tomorrow evening, June 26. Users do not need to take any action to prepare for this transition and can preview the updated interface here.
- ICYMI: Register for Small Firm Briefing on June 30
FINRA President and CEO Robert Cook will join Kayte Toczylowski, Head of Member Relations and Education, on June 30, 4:30–5 pm ET, for a conversation on FINRA Forward, a series of initiatives to modernize rules, empower member firm compliance, and combat fraud and cyber risks. Small firms will learn what they can expect next, and how to continue to provide feedback. Please register here.
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Regulatory Information, Upcoming Deadlines, Effective Dates |
New - No new guidance, upcoming deadlines, or effective dates have been announced since the last edition of the Weekly Update.
Reminders Amendments Relating to Immediately Effective FINRA Sanctions and Actions: FINRA recently proposed amending our rules relating to certain sanctions and regulatory measures that may take effect immediately. The proposed amendments would provide FINRA staff and adjudicators authority to grant respondents and applicants, where appropriate, the opportunity to seek a stay from the SEC or take other appropriate action when faced with an immediately effective sanction or other regulatory measure. These rule changes will be implemented on July 4. FINRA Forward: FINRA’s latest initiatives to support members, markets, and investors. Proposal on Business Development Companies: FINRA has amended its proposal to expand the proposed exemption for Business Development Companies (BDCs) from IPO allocation restrictions under FINRA Rules 5130 and 5131. FINRA Proposes Raising Gift Limit: FINRA filed a proposal to increase the limit on gifts its members can give to employees of an institutional customer, vendor, or counterparty. Comments are due by July 8. 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. FINRA Proposes Modifying Implementation Date of Securities Offering Review Fee Changes: Under the proposed changes, the new Corporate Financing Private Placement Review Fee and the Corporate Financing Public Offering Review Fee increases would be implemented on January 1, 2027, at the previously adopted rates for that year. During the 18-month period from July 1, 2025 through December 31, 2026, FINRA would continue its review of private placements at no charge and of public offerings at the current rate without increase. Outside Activities Proposal: Regulatory Notice 25-05 requested comment on a proposed new rule to streamline and reduce unnecessary burdens regarding existing requirements addressing the outside activities of member firms’ associated persons. Comments were due by May 13, but FINRA still welcomes feedback. Rule Modernization: Regulatory Notice 25-04 requested comment in connection with a broad review of FINRA’s regulatory requirements applicable to member firms and associated persons. Comments were due by June 11, but FINRA still welcomes feedback. 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 were due by June 18, but FINRA still welcomes feedback.
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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 June 2025 Monthly Disciplinary Actions are available here.
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Education and Compliance Programs |
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Resources |
Member Firm Hub – Latest guidance, resources, educational opportunities and more. Comment Process – On-demand webinar on how to provide comments on the FINRA Forward rule modernization and other proposals, as well as to learn about the impact of comment letters and how they are used. 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. |
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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
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