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FINRA Announces Board of Governors Election Results

August 12, 2020
Volume 32


  • Regulatory Notice
  • UPC Advisories
disciplinary actions

Disciplinary Actions


Upcoming Deadlines and Effective Dates
  • FINRA Requests for Comment

Education and Compliance Programs

This month, FINRA is hosting two virtual Investor Forums in the states of Nevada and Arkansas. These forums, hosted by FINRA President & CEO Robert Cook and FINRA Foundation President Gerri Walsh, will discuss the current investment climate and how to avoid unnecessary risks and common investing pitfalls. Register today!

  • Arkansas Investor Forum – Tuesday, August 25, at 4:30 p.m. EDT/3:30 p.m. CDT, featuring special guests U.S. Representative French Hill and Arkansas Securities Commissioner Eric Munson.
  • Nevada Investor Forum – Wednesday, August 26, at 7:30 p.m. EDT/4:30 p.m. PDT, featuring special guests U.S. Senator Catherine Cortez Masto and Nevada State Securities Administrator Erin Houston.

FINRA announced the results of its Board of Governors election. At the Annual Meeting of FINRA firms, small firms elected Wendy Lanton, Chief Operations/Compliance Officer, Lantern Investments, Inc., as a Small Firm Governor. Large firms re-elected Jim Nagengast, Chief Executive Officer of Securities America Financial Corporation Inc. and President of Securities America Inc., as a Large Firm Governor.


FINRA Shares Practices Firms Implemented to Prepare for the LIBOR Phase-out

FINRA reminds firms to evaluate their exposure to LIBOR (formerly, the London Interbank Offered Rate), and review their preparedness to manage LIBOR’s phase-out. To understand how firms are preparing for that phase-out, FINRA surveyed a representative cross-section of member firms, including some firms with significant trading volume or positions in LIBOR-linked securities. Regulatory Notice 20-26 provides a summary of the results of the survey.

UPC Advisories

The following UPC Advisories were published in the last week:

  • UPC #28-20: E-TRADE Financial Corporation – 5.875% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A & 5.3% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B
  • UPC #29-20: Foresight Energy LP (FELPQ, FEGYW)
  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:

  • FINRA announced that it has fined Interactive Brokers LLC $15 million for widespread failures in the firm’s anti-money laundering (AML) program.

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.


 Education and Compliance Programs

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 on A Small Firm Guide to Succession Planning. Join FINRA staff and industry panelists as they discuss considerations for developing a succession plan that works for your business.

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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