Board Approves Rule Proposals, Engages with Boca Raton-Area Firms
WASHINGTON – FINRA’s Board of Governors met on Feb. 28 and March 1 in Boca Raton, Florida, where it discussed the organization’s finances, reviewed several significant technology and other capital initiatives, and considered two rulemaking items (described below). The Board also met with staff from FINRA’s Boca Raton District Office, home of the FINRA Securities Helpline for Seniors and FINRA’s anti-money laundering team, and with representatives from member firms headquartered in the area during a special member reception.
The FINRA Board also received updates on FINRA’s regulatory operations, including the continuing transformation of its Risk Monitoring and Examination Program and its recent 529 Plan Share Class Initiative.
More information regarding the Board's operations, including the membership and responsibilities of its committees, is available at www.finra.org/governance.
Proposed Rule Changes Relating to Firms with a History of Misconduct – The Board approved moving forward with proposing new rules related to firms that have a disproportionately high number of regulatory disclosure events by the firm and/or its registered representatives. As a next step in the rulemaking process, FINRA will soon publish a Regulatory Notice seeking comment on the rules.
Proposal to Collect and Disseminate New Issue Reference Data in Corporate Bonds – The Board approved filing with the SEC proposed amendments to the Trade Reporting and Compliance Engine (TRACE) Rules to enhance collection and dissemination of new issue reference data for corporate bonds and charge associated fees. The proposal responds to a recommendation by the SEC’s Fixed Income Market Structure Advisory Committee.
FINRA is a not-for-profit organization dedicated to investor protection and market integrity. It regulates one critical part of the securities industry – brokerage firms doing business with the public in the United States. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.