Report from FINRA Board of Governors Meeting – March 2018
WASHINGTON — FINRA’s Board of Governors held its first meeting of 2018 on March 7-8 in New York, where it approved two new rule proposals and FINRA’s 2018 corporate goals, as well as reviewed the progress of the ongoing FINRA360 organizational improvement initiative introduced nearly one year ago.
The FINRA Board, which meets five times annually, also 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.
FINRA 2018 Corporate Goals
The Board approved FINRA’s 2018 corporate goals, which 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
“We continue to make great strides, but there is much more work to do, and this year’s goals reflect an ambitious agenda,” said FINRA CEO Robert W. Cook. “As always, enhancing investor protection and market integrity remain central priorities for FINRA in 2018. We will also focus on maintaining a strong enforcement program, continuing to take action through FINRA360, providing fair and efficient dispute resolution programs, and continuing to foster FINRA’s employee engagement and diversity and inclusion initiatives.”
The Board approved two rule proposals to be published by FINRA for comment or filed with the SEC:
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 is 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.