Update: FINRA Board of Governors Meeting

From:

Robert W. Cook, FINRA President and CEO

To:

FINRA Member Firms

Date:

Wednesday, March 14, 2018

FINRA's Board of Governors met last week for the first time in 2018, and I am writing to share with you some updates from our discussions.

During the meeting, the Board approved two new rule proposals and FINRA's 2018 Corporate Goals, and both of these items are discussed below. The Board also reviewed the progress of our ongoing FINRA360 organizational improvement initiative, which we introduced nearly one year ago. I look forward to soon providing a broader overview of the progress achieved through this initiative.

In addition, the Board met with Brett Redfearn, Director of the Securities and Exchange Commission's Division of Trading and Markets, to discuss perspectives on the oversight of broker-dealers and securities markets.

For more information about the discussions that took place during the March 2018 FINRA Board of Governors meeting, watch the March 2018 Board Report video. Our next meeting is in early May, and I will preview with you highlights of that meeting's agenda once details are confirmed.

Sincerely,

Robert W. Cook
President and CEO


Rulemaking Items Approved at the March 2018 Board Meeting

Retrospective Rule Review – Membership Application Rules
The Board approved publication of a Regulatory Notice soliciting comment on proposed amendments to the membership application rules following a retrospective review of the rules. The amendments would restructure and streamline the rules, strengthen investor protections with respect to changes of control, and codify current practices to reduce the application review period, among other changes.

Payments to Arbitrators for Deciding Contested Requests to Issue Subpoenas and Orders
The Board approved filing with the SEC amendments that would provide uniform payments to arbitrators for deciding contested subpoenas and orders for production and appearance.

FINRA 2018 Corporate Goals Approved at the March 2018 Board Meeting

FINRA's 2018 goals fall into the following categories:

  • Enhancing Investor Protection Through Coordinated, Risk-Based Oversight of Member Firms and Registered Representatives
  • Enhancing Market Integrity Through Effective Surveillance Programs
  • Remediating and Preventing Misconduct Through Timely, Predictable Enforcement
  • Enhancing Transparency for Investors and Other Market Participants
  • Providing Fair and Efficient Dispute Resolution Forums
  • Promoting Operational Excellence and Effective Relationships With FINRA Stakeholders
  • Fostering an Attractive, Diverse and Inclusive Workplace