FINRA’s virtual conference panels provide a unique opportunity to hear the most up-to-date compliance information directly from industry and regulatory leaders right from the comfort of your home. Watch the latest panel: Diversity and Inclusion. During this session, FINRA leaders Rainia Washington, Marcia Asquith and Audria Pendergrass Lee discuss their perspectives and insights on the importance of ensuring that diversity and inclusion remain a key commitment to firms in the financial services industry.
Upcoming Deadlines and Effective Dates
FINRA Requests for Comment
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 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.
Upcoming Effective Date
Effective August 3, 2020, members must report transactions in U.S. Treasury Securities executed to hedge a primary market transaction with an appropriate identifier. As described in Regulatory Notice 19-30, members will have additional time to report such transactions—until the next business day during TRACE system hours.
Temporary Amendments to FINRA Rules
FINRA has filed for immediate effectiveness with the SEC a proposed rule change to extend the expiration date of the temporary amendments to some timing, method of service and other procedural requirements in SR-FINRA-2020-015 from July 31, 2020, to a date to be specified in a public notice issued by FINRA, which date will be at least two weeks from the date of the notice, and no later than December 31, 2020, pending any future extensions.
Education and Compliance Programs
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.