COVID-19 Exam Enrollment Update

Guidance

• UPC Advisory

Upcoming Deadlines and Effective Dates

• FINRA Requests for Comment
• SEC Requests for Comment on FINRA Rules
• Elections
• Renewals

FINRA and Prometric continue to make the health and well-being of our community a top priority during this COVID-19 pandemic. Therefore, for exams not available online, FINRA and the MSRB will extend all enrollment windows that are currently expired, or will expire, between March 16 and December 31, 2020. FINRA and the MSRB exam enrollment end dates will be extended through the same end date of December 31, 2020. Affected enrollment windows have been systematically updated and reflected in CRD. FINRA and the MSRB will continue to assess this situation and consider whether any additional extension of their exam enrollment windows is necessary. For more information, visit our website.
 

FINRA’s President and CEO Robert Cook has released a statement regarding SEC Chairman Jay Clayton's announcement that he would leave the agency at the end of the year: “Throughout his tenure as Chairman of the SEC, Jay Clayton has been a strong advocate for investors and for fairness and integrity in our securities markets, and we have valued his partnership and support in overseeing the securities industry. Chairman Clayton has put forward an array of initiatives that promote the interests of retail investors, strengthen the effective regulation of securities markets and firms, enhance opportunities for companies and investors in the capital-raising process and expand the inclusiveness of the SEC and the industry it oversees. We congratulate him on his outstanding leadership of the SEC, and wish him well in his future endeavors.”
 

UPC Advisory

The following UPC Advisory was published in the last week:

• UPC #45-20: Libbey Inc (LBYYQ)

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:

• November 2020 Disciplinary Actions

Upcoming Deadlines and Effective Dates

FINRA Requests for Comment

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 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 Elections

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 began November 16, 2020, when FINRA made the Preliminary Statements available to all firms in E-Bill. As described in Regulatory Notice 20-39, the payment deadline is December 14, 2020.
 

 Education and Compliance Programs

Registration is open for the 2021 FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)^® Program. Week I takes place on July 18-23, 2021, and Week II takes place on November 14-19, 2021.Take advantage of our new reduced registration rates and gain your CRCP designation.