Upcoming Deadlines and Effective Dates
FINRA Requests for Comment
FINRA requests comment in Regulatory Notice 20-36 on a concept proposal regarding the application of FINRA rules to security-based swaps (SBS) following the SEC’s completion of its rulemaking regarding SBS dealers and major SBS participants. The comment period expires November 16, 2020.
FINRA requests comment in Regulatory Notice 20-33 on proposed formal procedures for bringing actions against non-associated persons who cheat or misbehave during a FINRA qualification examination. The proposed formal procedures—a new expedited proceeding rule—would also strengthen the existing processes for responding to cheating and misbehavior by associated persons during a FINRA qualification examination. FINRA also is proposing related amendments to FINRA’s registration requirements rule and eligibility proceedings rules. The comment period expires November 23, 2020.
FINRA requests comment in Regulatory Notice 20-34 on proposed amendments to Rule 2165 (Financial Exploitation of Specified Adults) to extend the hold period and to allow temporary holds on securities transactions to further address suspected financial exploitation of senior investors. The Notice also summarizes the retrospective rule review process, including the predominant themes that emerged from stakeholder feedback and resulting actions, and provides guidance to aid member firms and senior investors. The comment period expires December 4, 2020.
SEC Requests for Comment on FINRA Rules
The SEC requests comment on FINRA's proposal to amend the Code of Arbitration Procedure for Customer Disputes and the Code of Arbitration Procedure for Industry Disputes to increase arbitrator chairperson honoraria and certain arbitration fees. The comment period expires November 16, 2020. See the Federal Register notice.
The SEC requests comment on FINRA’s proposal to modify TRACE dissemination protocols regarding Agency Pass-Through MBS and SBA-Backed ABS traded in Specified Pool Transactions. The comment period expires November 19, 2020. See the Federal Register notice.
The SEC requests comment on FINRA’s proposal to amend FINRA Rules 5122 (Private Placements of Securities Issued by Members) and 5123 (Private Placements of Securities) that would require members to file retail communications concerning private placement offerings that are subject to those rules’ filing requirements. The comment period expires November 27, 2020. See the Federal Register notice.
The SEC requests comment on FINRA’s proposal to amend the By-Laws of FINRA Regulation, Inc., FINRA’s regulatory subsidiary, to align the grounds for member removal from the National Adjudicatory Council with an existing provision in the FINRA By-Laws related to the removal of a FINRA Governor from the FINRA Board of Governors. The comment period expires November 30, 2020. See the Federal Register notice.
FINRA has issued two Election Notices to notify firms of elections to fill vacancies on various FINRA Committees. Election Notice 10/20/20 notifies firms of elections for FINRA Regional Committees, and the mailing of ballots to eligible firms. As detailed in the Notice, the District 2 seats on the West Region Committee are the only contested seats. The second Election Notice 10/20/20 notifies FINRA small firm members of the process to fill one South and one Midwest Region vacancy on the Small Firm Advisory Committee (SFAC). Ballots are due by Thursday, November 19, 2020.
Broker-Dealer, Investment Adviser Firm, Agent and Investment Adviser Representative, and Branch Renewals for 2021
The 2021 Renewal Program begins November 16, 2020, when FINRA will make the Preliminary Statements available to all firms in E-Bill. As described in Regulatory Notice 20-39, the payment deadline is December 14, 2020.