FINRA Forward Rule Modernization Continues

Features

• FINRA Forward Rule Modernization Continues 
  Robert Colby, FINRA Executive Vice President and Chief Legal Officer, provided an update this week on rule modernization efforts under the FINRA Forward initiative. “FINRA wants to ensure that in today’s environment and tomorrow’s, our rules help protect investors and safeguard market integrity without imposing unnecessary burdens on firms,” he wrote in a blog Monday. 
  
  Colby described how FINRA has expanded the traditional rule review process, including issuing three broad public comment requests that generated more than 125 written comments. He also noted recent Board approvals to simplify outside activities requirements, raise the gift limit to $300 per person annually, and amend our rules to ease requirements on capital acquisition brokers (CABs) and promote capital formation without lessening investor protections. 
   
• Last Days to Apply For SFAC, Regional Committee Vacancies 
  FINRA will hold elections this month to fill vacancies on our Small Firm Advisory Committee (SFAC) and regional committees. To be included on the ballot, eligible candidates must submit an SFAC candidate profile form or regional committee candidate profile form to FINRA’s Office of the Corporate Secretary by Oct. 6 via email. 
   
• FINRA’s Crypto and Blockchain Program Goes Live 
  Foundational courses on crypto and blockchain are now available to member firms on FINRA’s e-learning platform. These courses establish a solid understanding of crypto assets, enabling participants to recognize key concepts and terminology relevant to the evolving crypto landscape. They are part of our ongoing commitment to educate the industry, empower firm compliance, and ensure our programs and activities are in line with the opportunities and risks in today's capital markets. More information on these offerings and future crypto and blockchain trainings is available here on FINRA.org. 
   
• FINRA Enhances Reporting Platform to Enable Vendor-Submitted Reports 
  Enhancements are underway to our reporting platform that will enable authorized third-party vendors to fulfill firms’ reporting obligations through a secure framework. This capability addresses industry feedback requesting more flexible reporting options and streamlined workflows.  
  
  Starting today, member firms will be able to authorize third-party vendors to submit SEC Rule 606(a) Reports on their behalf, pursuant to FINRA Rule 6151. Vendors acting on behalf of members will be able to use FINRA Gateway to upload the reports manually or via machine-to-machine interface. Step-by-step instructions are available here, or you may contact us with questions at [email protected]. 
   
• FINRA Reinforces Obligation to Comply with Information Requests 
  FINRA reminded member firms and associated persons that they must comply with Rule 8210, which authorizes FINRA staff and adjudicators to request information for purposes of an investigation, complaint, examination, or proceeding. The Sept. 25 Notice reminds member firms and associated persons that the requirements of Rule 8210 apply regardless of where they are located, does not provide an exception for potentially conflicting foreign laws, and that non-compliance can result in sanctions including firm expulsion or individual bar from the industry. 
   
• Pretest Questions to be Reduced for Key Securities Exams 
  Effective Oct. 27, FINRA will reduce the number of unscored, or pretest, questions delivered to candidates on the Securities Industry Essentials (SIE), Series 7—General Securities Representative, and Series 79—Investment Banking Representative exams. Candidates who take these exams will receive five unscored questions instead of 10. The duration of these exams will not change. For any questions, please contact FINRA Candidate Services at [email protected]. 
   
• Cyber Alert: Critical Cisco Vulnerabilities 
  FINRA member firms and their vendors should be aware that Cisco recently identified multiple vulnerabilities—several of them listed as critical—that could allow threat actors to compromise a firm’s systems. For more information, read FINRA’s Cybersecurity Alert here. 
   
• ICYMI: FINRA Board Holds September Meeting 
  At their Sept. 17-18 meeting in New York, the FINRA Board of Governors received a progress update on FINRA Forward and approved related amendments that will replace the day trading and pattern day trading rules, including the minimum equity of $25,000 for pattern day traders, with an intraday margin rule that applies the existing maintenance margin rules to intraday exposure. These and other updates are detailed in a letter FINRA President and CEO Robert Cook sent to member firms last week. 
   
• ICYMI: Regulatory Element Training Topics Now Available 
  Members can preview the 2026 Regulatory Element training topics to help prepare for next year’s continuing education requirements. FINRA Rule 1240 requires all registered reps to complete the Regulatory Element annually by Dec. 31 for each registration they hold. You can visit our website and select the appropriate registrations to view the learning plan for those registrations.