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FINRA Announces Regional Committee, SFAC and NAC Election Results and Appointments

December 24, 2019
Volume 52


  • Regulatory Notice
  • UPC Advisory
disciplinary actions

Disciplinary Actions


Upcoming Deadlines and Effective Dates
  • FINRA Request for  Comment

Education and Compliance Programs

FINRA recently held annual elections to fill vacancies on its Regional Committees, Small Firm Advisory Committee (SFAC) and the National Adjudicatory Council (NAC). Additionally, at its December meeting, the FINRA Board of Governors also selected individuals to fill several appointed seats on the SFAC and NAC. Election Notice 12/19/19 lists the individuals recently elected and appointed to these committees.


SEC Approves Amendments to FINRA Rules 5130 and 5131 Relating to Equity IPOs

The Securities and Exchange Commission approved a rule change to amend FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and FINRA Rule 5131 (New Issue Allocations and Distributions) to modify the rules to enhance regulatory consistency and address unintended operational impediments. These changes, outlined in Regulatory Notice 19-37, become effective on January 1, 2020.

UPC Advisory

The following UPC Advisory was published in the last week:

  • UPC #42-19 Cloud Peak Energy, Inc. (CLDPQ)
  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 posted the following disciplinary items on the website this week:

  • FINRA recently announced that it has fined Robinhood Financial, LLC $1.25 million for best execution violations related to its customers’ equity orders and related supervisory failures that spanned from October 2016 to November 2017. As part of the settlement, Robinhood also agreed to retain an independent consultant to conduct a comprehensive review of the firm’s systems and procedures related to best execution.
  • FINRA, Cboe Global Markets, The Nasdaq Stock Market LLC, the New York Stock Exchange, and their affiliated Exchanges (collectively, “Exchanges”) announced that they censured Credit Suisse Securities (USA) LLC, and fined the firm a total of $6.5 million for supervisory violations and violations of various provisions of Rule 15c3-5 of the Securities Exchange Act of 1934 (known as the Market Access Rule). The fine was apportioned among FINRA and the Exchanges.

 Upcoming Deadlines and Effective Dates

FINRA Request for Comment

Registered Person Being Named a Customer’s Beneficiary or Holding a Position of Trust
FINRA has issued Regulatory Notice 19-36 to request comment on a proposal to limit a registered person from being named a customer’s beneficiary or holding a position of trust on behalf of a customer. The proposed rule would require the member firm with which the registered person is associated to review and approve the registered person assuming such status or acting in such capacity. The proposed rule would not apply where the customer is a member of the registered person’s “immediate family.” Comments are due by January 10, 2020.


 Education and Compliance Programs

On Wednesday, January 8, 2020, at 2 p.m. ET, Consolidated Audit Trail, LLC and FINRA CAT, LLC will host a CAT 101 Industry Webinar. This Webinar is designed for Industry Members that may be new to, or less familiar with, CAT and will provide an introduction to the reporting requirements, timelines and mechanics of the Consolidated Audit Trail. Visit the website for more information.

Register today for FINRA's 2020 Cybersecurity Conference on January 14 in New York, NY. This one-day event helps you stay current on today's cybersecurity challenges and the ways in which organizations can understand vulnerabilities and threats, and create resilience against cyberattacks. View the conference agenda for more information.

Register today for the South Region Member Forum on January 23, 2020 in Hollywood, Florida. This one-day event is designed to provide financial professionals associated with FINRA member firms in the South region the opportunity to engage in key discussions with FINRA staff, and connect with industry leaders and peers.

Registration is now open for the North Region Member Forum on February 12, 2020 in Boston, MA. This one-day event will provide financial professionals associated with FINRA member firms in the North region the opportunity to engage in key discussions with FINRA staff and connect with industry leaders and peers.

Reserve your spot at FINRA’s premier event! Register today to receive reduced conference registration rates for the 2020 Annual Conference on May 12–14 in Washington, DC.

Save the Date for these upcoming FINRA events:

  • FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program – Week I | July 19–24, 2020 | Washington, DC
  • Small Firm Conference | October 14–15, 2020 | Santa Monica, CA
  • FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program – Week II | November 15–20, 2020 | Washington, DC

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