Skip to main content
Welcome to the new FINRA.org. Learn more about our updates.
Create your own user feedback survey

FINRA Announced the Election or Appointment of Four Governors to Its Board

August 21, 2019
Volume 34

 
 
guidance

Guidance
  • Regulatory Notice
  • UPC Advisory
disciplinary actions

Disciplinary Actions

 
upcoming

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

Education and Compliance Programs


FINRA announced the election or appointment of four Governors to its Board of Governors.
All four new governors begin their three-year terms on FINRA’s Board effective immediately.

  • Chris W. Flint, President & Chief Executive Officer, ProEquities, Inc. and Senior Vice President, Distribution Companies for Protective Life Insurance Company, was elected by large firms as a Large Firm Governor, one of three representatives of large firms on the Board.
  • FINRA small firms elected Linde Murphy, Chief Compliance Officer, M.E. Allison & Co., Inc., as one of three small firm representatives on the Board of Governors.

The two newly elected Governors join two new public Governors on FINRA’s Board. The two new public Governors, who were nominated by the Nominating Committee and approved by the full Board at its July Meeting in Washington, DC, are:

  • Camille Busette, Director of the Race, Prosperity, and Inclusion Initiative and Senior Fellow in Governance Studies at the Brookings Institution; and
  • Ethiopis Tafara, Vice President and General Counsel of Legal, Compliance Risk and Sustainability at the International Finance Corporation (part of the World Bank Group).

Tune in to the FINRA Unscripted podcast to hear FINRA leaders review existing and emerging regulatory topics that impact the broker-dealer industry, as well as other insights into the operations of FINRA.

On this episode of FINRA Unscripted, FINRA’s Rosie Allan joins the podcast to discuss FINRA’s four new corporate values—collaboration, expertise, innovation and responsibility. Listen to the podcast.

 


FINRA reminds firms to register for CAT reporting. FINRA issued Regulatory Notice 19-19 to remind firms they must register with FINRA CAT, LLC for reporting to the Consolidated Audit Trail (CAT). Initial CAT registration ran through June 27, 2019. FINRA urges any member firm with a CAT reporting obligation that has not yet registered to do so as soon as possible so the necessary entitlements for CAT reporting can be established in time for testing, which is scheduled to commence in December 2019.

All questions regarding CAT registration should be directed to the FINRA CAT Helpdesk at (888) 696-3348 or [email protected].

 



FINRA is accepting applications for the CRCP Small Firm Scholarship. FINRA is offering five scholarships to industry professionals from small firms to attend the FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)® program. The scholarship covers full tuition for the entire CRCP program, including room and board. FINRA is accepting applications through September 20, 2019. For more information, including eligibility requirements, the selection process and the application form, please visit our website.
 

 Guidance

Guidance Regarding Member Firms’ Supervisory Obligations when Participating in Investment-Related Activities with Municipal Clients

FINRA has issued Regulatory Notice 19-28 to remind member firms of their supervisory obligations under FINRA Rules 3110 (Supervision) and 3120 (Supervisory Control System) if they hold or transact in customer accounts owned by municipal entities or obligated persons (municipal clients), as defined in Section 15B of the Securities Exchange Act of 1934 (Exchange Act), and participate in investment-related activities with municipal clients, such as recommending or selling non-municipal securities products to such municipal clients. Under these circumstances, member firms are obligated to determine if such activities require registration as a municipal advisor.
 


UPC Advisory

The following UPC Advisory was posted in the past week:

  • UPC #28-19 Egalet Corporation
 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 items on the website this week:

 Upcoming Deadlines and Effective Dates

FINRA Requests for Comment

FINRA has issued Regulatory Notice 19-22 to request comment on a proposal to expand the alternative trading system (ATS) volume data that it publishes on its website to include information on transactions in corporate bonds and agency debt securities that occur within an ATS and are reported to FINRA’s Trade Reporting and Compliance Engine (TRACE). Comments are due September 7, 2019.

FINRA has issued Regulatory Notice 19-25 to request comment on a proposal to expand TRACE reporting requirements to collect information on trades in foreign sovereign debt securities that are U.S. dollar-denominated. Issuance activity in these debt securities has accelerated in recent years and FINRA believes the proposal would provide important regulatory information on an increasingly active segment of the market. Under the proposal, trades in U.S. dollar-denominated foreign sovereign debt securities would be subject to same-day reporting and would not be disseminated publicly. Comments are due September 24, 2019.

FINRA is conducting a retrospective review to assess the effectiveness and efficiency of its rules and administrative processes that help protect senior investors from financial exploitation. FINRA is interested in whether additional tools, guidance or changes to FINRA rules or administrative processes are appropriate to further address suspected financial exploitation and other circumstances of financial vulnerability for senior investors. Regulatory Notice 19-27 outlines the general retrospective rule review process, summarizes the rules and administrative processes that most directly apply to financial exploitation of senior investors, and seeks responses to a number of questions related to addressing financial exploitation. Comments are due October 8, 2019.

SEC Request for Comment on FINRA Rules

The SEC requests comment on FINRA’s proposal to amend Rules 5130 and 5131 to exempt additional persons from the scope of the rules, modify current exemptions to enhance regulatory consistency, address unintended operational impediments and exempt certain types of offerings from the scope of the rules. The comment period expires August 29, 2019. See the Federal Register notice.

FINRA Election

FINRA has issued Election Notice 8/20/19 to notify members of an upcoming election to fill one large firm and one mid-size firm seat on the National Adjudicatory Council (NAC), and to announce the FINRA Nominating & Governance Committee nominees for these vacancies. Individuals interested in petitioning to become candidates must complete and submit a candidate profile form by October 4, 2019.

 

 Education and Compliance Programs

Register today for the 2019 Institutional Conference on September 11 in New York. The event will bring together industry experts, executives and policymakers to discuss topics affecting institutional firms across the country. PLUS—a Fireside Chat with FINRA President and CEO Robert Cook and Senior Vice President and Northeast Regional Director Bill St. Louis. Download the conference brochure.


FINRA is hosting several upcoming Half-Day Compliance Boot Camps, AML Half-Day Seminars and Cybersecurity Half-Day Seminars across the country.

Half-Day Compliance Boot Camps

  • September 17, 2019 | Minneapolis, MN
  • September 17, 2019 | Baltimore, MD
  • September 25, 2019 | Stamford, CT
  • October 17, 2019 | Jericho, NY

AML Half-Day Seminars

  • September 19, 2019 | Chicago, IL
  • October 8, 2019 | New York, NY

Cybersecurity Half-Day Seminars

  • August 27, 2019 | Costa Mesa, CA
  • September 26, 2019 | Boca Raton, FL

District compliance events are designed for compliance and legal professionals at FINRA member firms, and offer an opportunity to hear about current regulatory issues while engaging with District Office staff. Upcoming events will be held in the Woodbridge and Atlanta District Offices.

Review the compliance calendar to see a complete list of events.


Registration for Fall Registration and Disclosure (RAD) Training Sessions is now open. Space is limited, so register soon!

  • Foundations of CRD Training | September 23–24, 2019 | Rockville, MD
    This training is designed for broker-dealer (BD) firms or joint BD/investment adviser firms and will cover both classic CRD and new CRD functionality, registration and disclosure hot topics, plus an overview of IARD.
  • FINRA Registration and Disclosure Boot Camp | September 25–26, 2019 | Rockville, MD
    This training is designed for those who are new to reporting disclosure information in CRD or those who want to receive refresher training and reporting tips.
  • Buy One, Get One Half Off: Attend both trainings for a reduced price. To receive the discount, register for one of the classes; the discount code to register for the other class will be included in your email confirmation. The discount is non-transferable.

The 2019 Small Firm Conference takes place on October 23–24 in Santa Monica, California. This event brings together FINRA staff and industry peers for in-depth discussions on small firms' practices. Register today to hear from FINRA leaders, including CEO Robert Cook and Executive Vice President of Member Supervision Bari Havlik. View the conference agenda for additional details.


Also coming up:

FINRA logo

 facebook   twitter   linked in

Regulatory Contacts
FINRA By-Laws require member firms to maintain an Internet email account on behalf of their executive representatives. This facilitates firm notification of important publications and information added to the FINRA website.

Firms wishing to change the name or email address of their executive representative or designated assistant should do so through the FINRA Contact System (FCS). See
http://www.finra.org/FCS for further information. Requests from executive representatives to be removed from this email notification list cannot be honored.

Subscribers
You received this message because you are currently subscribed to the email subscription list on the FINRA website. To update, sign up for other email lists or cancel your subscription at any time, use our "update information" or "unsubscribe" forms located at
http://www.finra.org/Industry/Subscriptions.