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FINRA Board of Governors Holds Third Meeting of 2021

July 21, 2021
Volume 29


  • Regulatory Notice
  • UPC Advisories
disciplinary actions

Disciplinary Actions


Upcoming Deadlines and Effective Dates
  • FINRA Requests for Comment
  • Upcoming Effective Date

Education and Compliance Programs

FINRA's Annual User Accounts Certification Process ended Monday, July 19. During this period, Super Account Administrators (SAAs) certify that individuals have the appropriate level of access to FINRA systems required to perform their job responsibilities or remove access if no longer required. Organizations that are required to complete the certification and have not yet done so must certify immediately. For detailed information, refer to the Annual Entitlement User Accounts Certification Process page.

Save the date and plan to join us virtually at FINRA’s annual Diversity Leadership Summit on September 28 – 30. This year’s summit will feature insights from diversity and inclusion thought leaders, FINRA senior leaders, other regulators and firms on the importance of embracing diversity, equity and inclusion—even during times of crisis. Look out for additional program information, which will be available in the coming weeks.

New e-learning course on fixed income ETFs. FINRA’s newest e-learning course is intended to help securities industry professionals understand fixed income exchange-traded funds (ETFs). By reviewing the underlying products and ETF mechanics, learners are taught how fixed income ETFs are created and purchased, as well as how market forces can impact investments. The course also highlights the advantages and disadvantages of investing in fixed income ETFs and provides guidelines to compare them to one another as well as to other products available on the market. The course is eligible for 0.5 CFP CE credits.

Treasury calls for large position reports. On July 15, 2021, the U.S. Department of the Treasury announced a call for Large Position Reports from those entities whose positions in the 0-7/8% Treasury Notes of November 2030 equaled or exceeded $4.1 billion as of Monday, November 16, 2020 or Monday, December 14, 2020. Reports must be received by Treasury before 5:00 p.m. (ET) on Thursday, July 22, 2021 and must include the required position(s) and administrative information. This call for Large Position Reports is made under Treasury’s large position reporting rules (17 CFR Part 420). Such information allows Treasury to monitor the impact of concentrations of positions in the Treasury securities market. Treasury’s announcement, a copy of a sample Large Position Report (which appears in Appendix B of the rules at 17 CFR Part 420), and supplementary formula guidance are available at

This week, the FINRA Board of Governors will hold its third meeting of 2021. As is often the case for the mid-year Board meeting, this meeting will revolve around a series of strategic discussions in lieu of a full schedule of committee meetings and a review of rule proposals. Select high-level discussions for this meeting will include how our industry is evolving, retail self-directed trading, digital assets, arbitration, and diversity and inclusion.


FINRA Amends Rules 5122 and 5123 Filing Requirements to Include Retail Communications That Promote or Recommend Private Placements

FINRA has adopted changes to FINRA Rules 5122 (Private Placements of Securities Issued by Members) and 5123 (Private Placements of Securities) to require members to file retail communications that promote or recommend private placement offerings that are subject to those rules’ filing requirements. The new filing requirements, outlined in Regulatory Notice 21-26, become effective on October 1, 2021.

UPC Advisories

The following UPC Advisories were published in the last week:

  • UPC #57-21: Prospect Cap Corp
  • UPC #58-21: Stifel Financial Corp (OTC Symbol: STFLV)
  • UPC #59-21: First Republic Bank San Francisco California (FRBSP)
  • UPC #60-21: Stifel Financial Corp. (STFLP)
  • UPC #61-21: Wells Fargo & Company (OTC Symbol: WFPDV)
  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 following disciplinary item on the website this week:

 Upcoming Deadlines and Effective Dates

FINRA Requests for Comment

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 has been extended to September 30, 2021.

FINRA issued Special Notice 6/30/21 seeking input from firms, investors, investor advocates, academics and other stakeholders who are knowledgeable about investor behavior regarding the most effective methods for educating newer investors. Comments will help inform and guide the investor education initiatives FINRA and the FINRA Investor Education Foundation undertake.
The comment period expires August
 30, 2021.

Upcoming Effective Date

FINRA has modified its Trade Reporting and Compliance Engine (TRACE) dissemination protocols applicable to agency pass-through mortgage-backed securities and Small Business Administration-backed asset-backed securities traded in specified pool transactions. The amendment, outlined in Regulatory Notice 21-02, will become effective on July 26, 2021.


 Education and Compliance Programs

Upcoming Webinars: Move Over, Firm Gateway: What to Expect on August 21, 2021. Attend FINRA’s upcoming webinars to learn about features retiring August 21 in Firm Gateway and Classic CRD. Presenters will also walk through the transition to FINRA Gateway and discuss other recent system changes. Register to attend from 2 – 3 p.m. Eastern Time on July 29 or August 12 to learn more. Presentation slides and recordings will be made available on the FINRA Gateway Webinars page. For more information, see the FINRA Gateway page.

Register for these upcoming FINRA events:

  • 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 | Limited seats available
  • 2022 FINRA Annual Conference | May 16 – 18, 2022 | Washington, DC

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