FINRA Publishes 2026 Regulatory Oversight Report

Features

• FINRA Publishes 2026 Regulatory Oversight Report 
  The 2026 FINRA Annual Regulatory Oversight Report is now available on FINRA.org. We published it earlier than usual in response to feedback from member firms about how valuable the report is for their annual compliance planning and in support of a key FINRA Forward initiative—empowering member firm compliance. 
  
  Among the topics the 2026 report covers are generative artificial intelligence (GenAI), cybersecurity and cyber-enabled fraud; manipulative trading in small-cap, exchange-listed equities; and third-party risk landscape. For each topic area covered, the report identifies the relevant rule(s); summarizes noteworthy findings from recent oversight activities involving firms; outlines firms’ effective practices that FINRA observed through its oversight activities; and provides additional resources that may be helpful to firms in reviewing their supervisory procedures and controls and fulfilling their compliance obligations. 
  
  You may read the report here, or listen to the FINRA Unscripted podcast that discusses the findings here. 
   
• New FINRA Foundation Research Examines Shifting Investor Behaviors 
  The FINRA Investor Education Foundation has released new research, Investors in the United States: Results from the FINRA Foundation’s National Financial Capability Study, which offers insights into the attitudes, behaviors, knowledge, and experiences of retail investors in the U.S. The findings, published Dec. 4, are drawn from the investor survey component of the FINRA Foundation’s latest National Financial Capability Study (NFCS). The FINRA Foundation’s research builds on previous NFCS Investor Survey reports and includes new or expanded topics, such as attitudes toward risk, reliance on finfluencers, and awareness of investment fraud. 
   
• FINRA Streamlines TRACE Reporting for BD/IAs 
  FINRA has amended Rule 6730 to allow firms that operate as both broker-dealers and investment advisers (BD/IAs) to report allocations of aggregate orders to multiple managed customer accounts in a single TRACE report, rather than filing separate reports for each account allocation. FINRA is also maintaining the current 15-minute TRACE reporting timeframe and is not moving forward with the previously proposed reduction to one minute. The optional streamlined reporting alternative takes effect June 8, 2026, as detailed in Reg. Notice 25-17 published Dec. 4, 2025. 
   
• FINRA Updates Codes of Arbitration Procedure to Accelerate Arbitration for Qualified Parties 
  FINRA amended its Codes of Arbitration Procedure to accelerate the processing of arbitration proceedings for parties who qualify based on their age or health condition. The amendments shorten case processing deadlines for eligible parties and provide guidance to arbitrators regarding how quickly they should endeavor to complete an arbitration proceeding. The amendments become effective March 30, 2026, as detailed in Reg. Notice 25-18 published Dec. 9, 2025. 
   
• New Features for Order Routing Reports 
  FINRA will introduce two new, user-friendly features for disclosing Rule 606(a) clearing relationships and accessing Rule 606(a) reports. Effective Dec. 12, introducing firms that adopt their clearing firms’ reports by reference will disclose those relationships via FINRA Gateway™ rather than CSV files. All previously submitted Adopt by Reference relationships will be migrated to the new interface prior to launch. In addition, FINRA will now support bulk downloads for all Rule 606(a) reports, making it easier to access and analyze them. 
   
• Municipal Market Compliance Outreach Program Set for January 
  The Compliance Outreach Program for Municipal Advisors and Municipal Dealers that was previously postponed has been rescheduled for Jan. 21-22, 2026. This complimentary virtual event provides municipal market participants an opportunity to hear from staff of the SEC, MSRB, and FINRA on timely regulatory and compliance matters. 
   
• ICYMI: Member Firm Report Cards Enhanced with Interactive Features and New Content 
  We have significantly enhanced our report card program, a voluntary compliance support tool that has served member firms for more than 25 years. In a new blog, Stephanie Dumont, Executive Vice President and Chief Market Services Officer, outlines key developments: a new interactive report card interface offering daily data updates and customizable features; new “classic” report cards, including one about offering activity in municipal bonds; continued engagement with member firms to guide future improvements; and more. 
   
• ICYMI: FINRA Cybersecurity Alert—SitusAMC Security Incident 
  Member firms should be aware of a security incident involving SitusAMC, a technology services company that provides solutions to commercial and real estate banks and financiers, many of which serve as vendors to member firms. Given the third- and fourth-party risk that this incident poses to firms, FINRA recommends sharing this Cyber Alert with appropriate information technology and information security personnel as well as with any third-party vendors that may also leverage the services of SitusAMC.