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Guidance
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Disciplinary Actions
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Upcoming Deadlines and Effective Dates
- Election Notices
- SEC Request for Comment
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Education and Compliance Programs
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FINRA’s Renewal Program supports the collection and disbursement of fees related to the renewal of broker-dealer (BD) and investment adviser (IA) registrations, exempt reporting and notice filings with participating self-regulatory organizations (SRO) and jurisdictions per Regulatory Notice 22-22. FINRA communicates information about renewal fees BD and IA firms owe via a Preliminary Statement in November and publishes a Final Statement in January.
Preliminary Statements for the 2023 Renewal Program are now available in E-Bill. FINRA must receive full payment of the Preliminary Statement fees by Dec. 12, 2022. For more information, please visit FINRA’s Annual Renewal Program page.
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Guidance
FINRA Regulatory Notice 22-25 alerts members to an emerging threat to customers and members, where FINRA, NASDAQ and NYSE have observed initial public offerings (IPOs) for certain small capitalization (small-cap) issuers listed on U.S. stock exchanges that may be the subject of pump-and-dump-like schemes (sometimes referred to as "ramp-and-dump" schemes in other jurisdictions).
FINRA has amended Rule 11880 (Settlement of Syndicate Accounts) to revise the syndicate account settlement timeframe for offerings of corporate debt securities. The amendments are effective for public offerings of corporate debt securities that commence on or after January 1, 2023.
FINRA is conducting a targeted exam of firm practices regarding retail communications concerning Crypto Asset products and services. Unless otherwise noted, the relevant period for each request is July 1, 2022 through September 30, 2022 (the “Relevant Period”).
FINRA published Regulatory Notice 22-23 concerning the benefits of succession planning and common types of succession plans. This Notice also provides an overview of related FINRA rules and administrative processes and includes questions to consider when developing and implementing succession plans.
FINRA has published Short Interest FAQ on the FINRA website regarding members’ short interest reporting obligations pursuant to FINRA Rule 4650 (Short-Interest Reporting). Any questions regarding short interest reporting should be directed to FINRA's Market Regulation Department, at (240) 386-5126 or FINRA's Office of General Counsel, at (202) 728-8071.
FINRA is filing with the SEC a proposed rule change to extend temporary Supplementary Material .17 (Temporary Relief to Allow Remote Inspections for Calendar Years 2020 and 2021, and through December 31 of Calendar Year 2022) under FINRA Rule 3110 (Supervision).
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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 recently published the November 2022 Monthly Disciplinary Actions.
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Upcoming Deadlines and Effective Dates
FINRA Elections
FINRA is holding elections to fill seats on the Small Firm Advisory Committee (SFAC) and Regional Committees.
- On Monday, October 24, FINRA mailed the official Election Notices and ballots with names of all qualified individuals to the executive representatives of FINRA member firms eligible to vote in the elections for the SFAC and Regional Committee. Ballots are due by Wednesday, November 23.
SEC Request for Comment
On October 31, 2022, the SEC issued an order instituting proceedings to determine whether to approve or disapprove FINRA’s proposal to adopt new Supplementary Material .19 (Residential Supervisory Location) under FINRA Rule 3110 (Supervision) that would align FINRA’s definition of an office of supervisory jurisdiction (“OSJ”) and the classification of a location that supervises activities at non-branch locations with the existing residential exclusions set forth in the branch office definition to treat a private residence at which an associated person engages in specified supervisory activities as a non-branch location, subject to safeguards and limitations.
In accordance with Rule 3110(c), as a non-branch location, a Residential Supervisory Location would become subject to inspections on a regular periodic schedule, which is presumed to be at least every three years, rather than an annual inspection requirement required of OSJs and other supervisory branch offices. Comments are due November 25, 2022. Any rebuttals to comments filed with the SEC are due December 9, 2022. See the SEC Notice of Order.
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Education and Compliance Programs
Registration is now open for the Disclosure Reporting: CHRI and Criminal Documents webinar on Tuesday, Nov. 29 from 2 to 3 p.m. ET. During this one-hour webinar, FINRA will discuss reviewing Criminal History Record Information (CHRI) reports and submitting criminal documents in response to disclosure requests. This webinar is intended for compliance professionals at member firms. See the Disclosure Reporting webinar series page for recordings and presentation slides from previous webinars.
Take advantage of our reduced registration rates and attend our new Firm Grouping Conference on Dec. 1, 2022, in Kissimmee, FL. This event is designed to provide financial professionals associated with FINRA member firms the opportunity to engage in conference panels tailored to their specific firm grouping. Join FINRA staff and industry peers for thoughtful discussions around the future landscape of the financial services industry. View the agenda for additional details.
Register for all of FINRA’s upcoming events:
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