| |
Guidance
- Regulatory Notice 22-31
- Regulatory Notice 22-29
- Regulatory Notice 22-28
|
Disciplinary Actions
|
Upcoming Deadlines and Effective Dates
- FINRA Request for Comment
- SEC Request for Comment
|
Education and Compliance Programs
|
|
 |
Upcoming Release of the 2023 Report on FINRA’s Examination and Risk Monitoring Program
We will release the 2023 Report on FINRA’s Examination and Risk Monitoring Program in January 2023, several weeks earlier than in prior years. This earlier release of the report, which sets forth our observations and findings across key regulatory topics, will help firms as they engage in compliance planning for 2023.
|
|
FINRA Investor Education Foundation (FINRA Foundation) has announced the publication of their study, "Investors in the United States: The Changing Landscape," which reveals a new generation of younger and less experienced investors that is vastly different from older generations in their investment behaviors and attitudes.
|
|
Guidance
FINRA updated the Supplemental Statement of Income (SSOI) Frequently Asked Questions (FAQ) to clarify reporting of revenue from unregistered offerings. The updated guidance is available under Revenue from Underwritings and Selling Group Participation (Section 8) in the FAQ set.
Member firms are required to make reasonable efforts to obtain the name of and contact information for a trusted contact for a non-institutional customer’s account. Regulatory Notice 22-31 summarizes member firms’ regulatory obligations, discusses the benefits of trusted contacts in administering customers’ accounts, highlights customer education resources and shares effective practices member firms use.
FINRA has received reports about increasing numbers and sophistication of ransomware incidents. Regulatory Notice 22‑29 addresses the proliferation of ransomware attacks due to, in part, increased use of technology and continued adoption of cryptocurrencies, which bad actors use to hide their identities when collecting ransom payments.
Recently published Regulatory Notice 22-28 recognizes the adopted amendments by FINRA to the Rule 6700 series (Trade Reporting and Compliance Engine (TRACE)) to require members to report to TRACE transactions in U.S. dollar-denominated foreign sovereign debt securities. The amendments will take effect on November 6, 2023.
|
|
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 December 2022 Monthly Disciplinary Actions.
|
|
Upcoming Deadlines and Effective Dates
FINRA recently held annual elections to fill vacancies on the Small Firm Advisory Committee (SFAC) and the Regional Committees, in addition to appointments made by the FINRA Board of Governors (FINRA Board). Election Notice 12/16/2022 lists the individuals recently elected and appointed to the SFAC, Regional Committees and NAC.
FINRA Request for Comment
In support of the Securities and Exchange Commission’s re-proposal to amend Rule 15b9-1 under the Securities Exchange Act of 1934, FINRA is issuing this Regulatory Notice 22-30 in order to re-open the comment period for Regulatory Notice 15-13.
The SEC amended Rule 17a-4 on October 12, 2022 to modify the requirements regarding the maintenance and preservation of electronic records, the use of third-party recordkeeping services to hold records, and the prompt production of records. The effective date and compliance date for the amendments are January 3, 2023, and May 3, 2023, respectively. FINRA has prepared a chart that summarizes the most significant changes.
SEC Request for Comment
The SEC requests comment on FINRA’s proposal to require members to: (i) publish order routing reports for orders in OTC Equity Securities; and (ii) submit both their existing order routing reports for NMS Securities and the new order routing reports for OTC Equity Securities to FINRA for publication on the FINRA website. Comments are due December 27, 2022. See the Federal Register notice.
|
|
Education and Compliance Programs
Firm compliance personnel who are new to registration and licensing—or would like to become more familiar with navigating related systems—are invited to join FINRA virtually for an upcoming Registration Systems Foundation training. These training sessions run from noon to 5 p.m. ET on two consecutive days.
The January session has already sold out; don’t miss your chance to attend the March training. See the Virtual Training Schedule & How to Register page for more information.
Register now to take advantage of early-bird rates for the 2023 Annual Conference. Attend our premier event to connect and network with industry peers, engage in informal conversations with FINRA senior leaders and exchange diverse perspectives on the most timely compliance and regulatory topics.
Reserve your spot for the 2023 FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)® Program in Washington, DC. This popular program brings together world-renowned professors, expert faculty and fellow industry participants for two non-consecutive weeklong courses on the foundation, theory and practical application of securities laws and regulation. The program sold out this year. Register early to secure your seat. Week I will be held on July 16 – 21 and Week II will be held on November 12 – 17.
Register for all of FINRA’s upcoming events:
|
|
