FINRA Board Meeting Preview

Features

• FINRA Board Meeting Preview 
  During its meeting this week, the FINRA Board of Governors will address key regulatory initiatives including proposed amendments to pattern day trading rules and progress on FINRA’s other rule modernization efforts, which were published as part of FINRA Forward, a series of initiatives to further improve our effectiveness and efficiency. Board committees will also receive an update on FINRA’s cybersecurity program and conduct the biennial assessment of FINRA’s Financial Guiding Principles. You may find more information about the Board’s operations, including the membership and responsibilities of its committees, by visiting FINRA’s governance page. 
   
• SEC Requests for Comment on Proposed Rule Changes 
  The Securities and Exchange Commission (SEC) issued an order on Sept. 11 instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change to amend the FINRA Capital Acquisition Broker (CAB) rules. Comments are due to the SEC by Oct. 7 and rebuttal comments are due by Oct. 21. 
  
  The SEC issued another order on Sept. 12 instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change to amend FINRA Rule 3220 (Influencing or Rewarding Employees of Others) to increase the gift limit from $100 to $300 per person per year, as modified by Amendment No. 1, which was filed on Sept. 11. Comments are due to the SEC by Oct. 8 and rebuttal comments are due by Oct. 22. 
   
• SEC to Host Webinar for Large Firms on Regulation S-P 
  The SEC announced it will hold a series of three compliance outreach events regarding the 2024 adoption of amendments to Regulation S-P. The first event, for large firms, is a webinar scheduled for Sept. 25 from 1 p.m. to 2 p.m. ET. The other two events, for transfer agents and small firms, will be announced at a later date. While not required, advance registration is preferred. Questions may also be submitted in advance. A link to watch the event will be available on the SEC's website on Sept. 25. 
   
• LULD Plan Operating Committee Seeks Advisory Committee Reps 
  The Limit Up/Limit Down (LULD) Plan Operating Committee is accepting applications for advisory committee representatives, with submissions due by Oct. 10. The Operating Committee for the Plan to Address Extraordinary Market Volatility, commonly known as the LULD Plan, was initially approved by the SEC on a pilot basis in 2012 and approved as a permanent rule in 2019. The plan is administered by representatives from the national securities exchanges and FINRA. Interested candidates can find detailed information about the advisory committee and application instructions on the LULD Plan website. 
   
• New Podcast: FINRA’s Crypto and Blockchain Education Program 
  The latest episode of the FINRA Unscripted podcast focuses on the launch of FINRA’s Crypto and Blockchain Education Program, designed to empower member firm compliance and combat crypto fraud by broadening the knowledge base of member firms and others. The episode delves into the program’s self-paced e-learning courses and an upcoming in-person training. 
  
  Members may sign up for the next free webinar on cyber and financial crimes that we are holding on Oct. 1. Registration is also open for our hybrid Cyber Crimes Conference and several hands-on compliance workshops with tabletop exercises covering the following topics:
  • safeguarding trading infrastructure from cyberattacks,
  • preventing senior investor exploitation,
  • data breach response, and more. 
     
• ICYMI: Call for Candidates for Committee Elections 
  FINRA will hold elections in October to fill vacancies on our Small Firm Advisory Committee (SFAC) and Regional Committees. These committees serve as key venues for member firms to offer input on FINRA regulatory programs, share perspectives on industry trends, and consult on proposed policies and rule changes. One seat from the New York region is up for election on the Small Firm Advisory Committee. In the Regional Committee elections, the South and West regions each have six seats to fill, while the Midwest, North, and New York regions each have four vacancies. 
  
  Interested individuals should review the SFAC Election Notice and Regional Election Notice for details on candidate eligibility, the election process, and other information. To be included on the ballot, eligible candidates must submit an SFAC candidate profile form or Regional Commitees candidate profile form to FINRA’s Office of the Corporate Secretary by Oct. 6 via email.

• SEC Requests for Comment
  • CAB Rules: Comments due to the SEC by Oct. 7 and rebuttal comments due by Oct. 21. See above feature for details. 
     
  • Gifts Rule: Comments due to the SEC by Oct. 8 and rebuttal comments due by Oct. 22. See above feature for details.