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Guidance
- Exemptive Finterprinting Relief
- Regulatory Notice
- FINRA Rule 4111 Annual Calculation Report
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Disciplinary Actions
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Upcoming Deadlines and Effective Dates
- FINRA Request for Comment
- SEC Request for Comment
- Treasury Department Notice and Request for Information
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Education and Compliance Programs
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On July 14, the FINRA Investor Education Foundation published its latest wave of the National Financial Capability Study. The research finds that on many measures of financial capability, U.S. adults generally fared better in 2021 than in the decade leading up to the pandemic. However, it also shows that Americans’ financial wellbeing remains unevenly distributed. Groups that have historically struggled continue to do so. The full report, datasets, and questionnaires are free to download and provide a rich source of information—spanning a dozen years—that can be used to better understand the financial behaviors and attitudes of U.S. adults. Over the years, nearly 1,500 scholarly studies have cited the data.
FINRA Board of Governors Election Is Underway Through August 19. Today, FINRA posted Election Notice 07/20/22 (Notice of Annual Meeting of FINRA Firms and Election Proxy) announcing the 2022 Annual Meeting of FINRA members to elect one individual to the FINRA Board of Governors. The available seat up for election is one of three designated for representatives of small firms. The Notice provides details on the election process and the two candidates for the small firm governor seat:
- Stephen A. Kohn, President, DMK Advisors Group, Inc.
- Linde Murphy, President & Chief Compliance Officer, M.E. Allison & Co., Inc.
Small firms that are members of FINRA as of the close of business on Tuesday, July 19, 2022, are eligible to vote in this election and may do so via the Internet, telephone or U.S. mail, or by attending the Annual Meeting in person.
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Guidance
Temporary Exemptive Fingerprint Relief Terminating Effective Sept. 6. The temporary exemptive relief for submitting fingerprint information—which was established by the SEC and FINRA in response to the COVID-19 pandemic in March 2020—will terminate effective Sept. 6, 2022. Firms relying on the exemptive relief must submit fingerprint information for associated individuals according to the time frames detailed on FINRA’s website.
Firms can utilize the “Active Individuals Roster” template in FINRA Gateway Reports to identify individuals with outstanding fingerprint requirements. Entitled firm users can learn more about filtering the report for this purpose in Classic CRD and FINRA Gateway system messages.
Regulatory Notice
Following the enactment of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (Act), FINRA amended the Code of Arbitration Procedure for Industry Disputes (Code) to align the Code with the Act. The amendments are described in Regulatory Notice 22-15 and went into effect immediately.
FINRA Rule 4111 Annual Calculation Report
As of last week, member firms can access the new Rule 4111 Compliance Tool to review their annual calculation report. This tool helps assess, as of the June 1, 2022, evaluation date, whether your firm has met the Rule 4111 Preliminary Criteria for Identification, including the Preliminary Identification Metrics.
To access the Rule 4111 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 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. The tool is found in FINRA Gateway under the Reports tab.
For more information, consult the Rule 4111 FAQ, the Rule 4111 Compliance Tool Glossary and watch a virtual demonstration of the Rule 4111 Compliance Tool, all available on FINRA.org.
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Disciplinary Actions
FINRA publishes disciplinary actions to remind registered representatives and firms of specific conduct that violates FINRA rules and may result in disciplinary action. FINRA posted the July issue of FINRA Disciplinary and Other Actions to its website last week.
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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 Request for Comment
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
The FINRA Advertising Regulation Conference is back! Join us in Washington, DC, on October 20-21, 2022, for a conference designed specifically for new and experienced communications compliance professionals. Participate in forward-looking discussions on current practices, policies, priorities and rulemaking. Plus, use this opportunity to network with industry peers and meet one-on-one with Advertising Regulation Department staff during office hours. Early bird rates are still available.
Week II of the 2022 FINRA Institute at Georgetown CRCP® Program has limited spots available. Reserve your spot now and join us in Washington, D.C., on November 13-18. View the 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:
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