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Voting for the FINRA Board of Governors Election is Underway

July 22, 2020
Volume 29


  • Regulatory Notice
  • Information Notice
  • UPC Advisories
disciplinary actions

Disciplinary Actions


Upcoming Deadlines and Effective Dates
  • FINRA Requests for Comment
  • SEC Request for Comment on FINRA Rules
  • FINRA Elections

Education and Compliance Programs

In response to COVID-19, FINRA has administratively postponed all in-person hearings scheduled through October 2, 2020. For more information, please visit FINRA’s website.

Tune in to the latest episode of the FINRA Unscripted podcast. On this episode, we’re dropping in for a quick listen to the latest FINRA Virtual Conference Panel with FINRA CEO Robert Cook, Member Supervision Head Bari Havlik and Chief Legal Officer Bob Colby, moderated by Chip Jones, head of Member Relations and Education, as they talk about the continued impact of the coronavirus on firm and FINRA operations, recent conversations around racial justice in America and more. Listen to the podcast.


FINRA Amends Arbitration Codes to Apply Minimum Fees to Requests for Expungement of Customer Dispute Information

FINRA has amended its Codes of Arbitration Procedure for Customer and Industry Disputes (Codes) to apply minimum fees to requests for expungement of customer dispute information, whether the request is made as part of the customer arbitration or the associated person files an expungement request in a separate arbitration (straight-in request). The amendments also apply a minimum process fee and member surcharge to straight-in requests, as well as a minimum hearing session fee to expungement-only hearings. The amendments, outlined in Regulatory Notice 20-25, are effective for cases filed on or after September 14, 2020.

Consolidated Audit Trail: Industry Presentation by CMRWG on CAT Compliance Rules

FINRA has issued Information Notice 7/17/20 to inform members of a scheduled industry presentation by the Cross Market Regulation Working Group (CMRWG) and FINRA CAT on July 29, 2020, at 10 a.m. ET regarding SRO regulation of Consolidated Audit Trail (CAT) Compliance Rules and FINRA CAT’s role in CAT compliance

UPC Advisories

The following UPC Advisories were published in the last week:

  • UPC #26-20: Quorum Health Corporation (QHCCQ)
  • UPC #27-20: Eco-Stim Energy Solutions, Inc. (ESESQ)
  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 inviting member firms that participate, or plan to participate, in the security-based swap (SBS) market to provide views and information with regard to broker-dealer SBS activities, including the application of FINRA rules to those activities. Any other interested party is also invited to submit views and information. For more information, including how to make a submission, please visit the FINRA website. FINRA would appreciate receiving responses by July 31, 2020.

FINRA encourages comments on its recent paper on Artificial Intelligence (AI) in the Securities Industry, including areas where guidance or modifications to FINRA rules may be desired to support adoption of AI applications while maintaining investor protection and market integrity. Comments are requested by August 31, 2020.

FINRA requests comment in Regulatory Notice 20-24 on two proposed changes to the TRACE reporting rules that were recommended by the Securities and Exchange Commission’s Fixed Income Market Structure Advisory Committee. The proposed changes would require firms to: (1) identify corporate bond trades where the price of the trade is based on a spread to a benchmark Treasury security that was agreed upon earlier in the day (i.e., a “delayed Treasury spot trade”) and report the time at which the spread was agreed upon; and (2) identify corporate bond trades that are a part of a larger portfolio trade.
The comment period expires September 14, 2020.

SEC Request for Comment on FINRA Rules

The SEC requests comment on FINRA’s proposal to adopt FINRA Rule 3241 (Registered Person Being Named a Customer’s Beneficiary or Holding a Position of Trust for a Customer). The comment period expires July 30, 2020. See the Federal Register notice.

FINRA Elections

FINRA will conduct its Annual Meeting of firms on Friday, August 7, 2020. The purpose of the meeting is to elect individuals to fill one small firm seat and one large firm seat on the FINRA Board of Governors. Firms that are members of FINRA as of the close of business on Tuesday, July 7, 2020, are eligible to vote. See Election Notice 7/8/20 for information about the voting methods and candidate profiles.


 Education and Compliance Programs

Registration is now open for the upcoming Small Firm Conference Call on Wednesday, July 29, 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 FINRA staff to discuss recent FINRA updates, including the new FAQ about exemption reporting under SEA Rule 15c3-3, adjusting supervisory systems to a remote work environment, and recent guidance on private placement retail communications. This event is open to all FINRA member firms.

Register to join the Securities and Exchange Commission, Municipal Securities Rulemaking Board, and FINRA for the virtual Compliance Outreach Program for Municipal Advisors. The webcast program will be held Thursday, August 13, 2020, from 1 p.m. to 3 p.m. ET. Registration is open to all municipal advisory industry professionals.


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Regulatory Contacts
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