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Guidance
- Rule 4111 Annual Calculation Reports
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Upcoming Deadlines and Effective Dates
- FINRA Request for Comment
- SEC Requests for Comment
- Treasury Department Notice and Request for Information
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Education and Compliance Programs
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FINRA published its 2021 Annual Financial Report which describes how FINRA managed its finances in 2021. Read the report to learn more about the key drivers of FINRA’s 2021 financial performance. FINRA also published the Report on Use of 2021 Fine Monies, which describes the capital initiatives, strategic expenditures and other activities funded by fine monies.
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On the latest episode of FINRA Unscripted, Meredith Cordisco, associate general counsel with the Office of General Counsel, Scott Gilbert, vice president covering the large diversified firm group and alternative net capital group within Member Supervision, and Nicole McCafferty, senior director with the National Cause and Financial Crimes Detection Program, discuss how FINRA is examining around the new Regulation Best Interest regulations and explore some of the common problem areas and effective practices when it comes to complying with all that is now required. Listen to the podcast.
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July 1 marked the 20th anniversary of FINRA’s Trade Reporting and Compliance Engine (TRACE), FINRA’s real-time, over-the-counter price dissemination service for the fixed-income market. Stephanie Dumont, executive vice president of Market Regulation and Transparency Services, and Ola Persson, senior vice president of Transparency Services, reflected on the history, impact and future of the platform.
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Guidance
Rule 4111 Annual Calculation Reports
The report of the annual calculation of whether your firm has met the Rule 4111 Preliminary Criteria for Identification as of the June 1, 2022, Evaluation Date will be available in the new Rule 4111 Compliance Tool on July 11, 2022. To access the Compliance Tool, a firm’s Super Account Administrator (SAA) can assign eligible users the “Firm View Rule 4111 Compliance Tool” entitlement in the FINRA Account Management System located in the FINRA Gateway. The entitlement for the tool is located under Registrations, in the CRD section. If a firm’s SAA does not grant this entitlement to any of its users, the firm will be unable to access the tool.
As explained in Rule 4111 FAQ 8.1, the tool will provide, as they are issued, reports of: (1) the annual calculation of whether the member firm met the Preliminary Criteria for Identification, including its Preliminary Identification Metrics, as of the Evaluation Date for a given year; and (2) interim calculations as of an Evaluation Date for that given year. A description of the terms used in the reports can be found in the Rule 4111 Compliance Tool Glossary. A recording of FINRA’s May 26, 2022, virtual demonstration of the Rule 4111 Compliance Tool is available on FINRA.org.
For questions regarding this resource or entitlement questions, please contact the FINRA Call Center at (301) 869-6699 or send an email to the Compliance Tools team. For more information about Rule 4111, see FINRA Regulatory Notice 21-34, Information Notice 2/1/2022, and the Protecting Investors From Misconduct Key Topic page.
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Upcoming Deadlines and Effective Dates
FINRA Request for Comment
FINRA is soliciting comment on a proposal to establish a new trade reporting requirement for transactions in over-the-counter options on securities with terms that are identical or substantially similar to listed options. FINRA is proposing to require firms to report this information to FINRA on a daily basis (end-of-day) for regulatory purposes only. Comments are due September 20, 2022. See Regulatory Notice 22-14.
SEC Requests for Comment
The SEC requests comment on FINRA’s proposal to amend Rule 8312 (FINRA BrokerCheck Disclosure) to release information on BrokerCheck® as to whether a particular member firm or former member firm is currently designated as a “Restricted Firm” pursuant to Rule 4111 (Restricted Firm Obligations) and Rule 9561 (Procedures for Regulating Activities Under Rule 4111). Comments are due July 8, 2022. See the Federal Register notice.
The SEC requests comment on FINRA’s proposal to amend Rule 6750 (Dissemination of Transaction Information) to provide that FINRA may publish or distribute aggregated transaction information and statistics on U.S. Treasury Securities on a more frequent basis. Comments are due July 22, 2022. See the Federal Register notice.
Treasury Department Notice and Request for Information
The U.S. Department of the Treasury has issued a Request for Information seeking comment on additional post-trade transparency for data regarding secondary market transactions in U.S. Treasury Securities, including the potential benefits and risks of several potential ways to build on existing public transparency. See the Notice Seeking Public Comment. Comments are due 60 days after the date of publication of the Notice in the Federal Register.
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Education and Compliance Programs
Week I of the 2022 FINRA Institute at Georgetown CRCP® Program is sold out and Week II has limited spots available. Reserve your spot now and join us in Washington, D.C., on November 13-18. View the Week II detailed schedule for a look at what sessions are being held and the participating faculty.
Thinking ahead and want to reserve your spot for next year? Registration for 2023 Week I is now open.
Register for all of FINRA’s upcoming events:
- FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program
- Week I | July 17 – 22, 2022 | Washington, DC | Sold Out
- Week II | November 13 – 18, 2022 | Washington, DC
- Advertising Regulation Conference | October 20 – 21, 2022 | Washington, DC and Virtual
- Small Firm Conference | November 9 – 10, 2022 | Santa Monica, CA and Virtual
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