Guidance

FINRA prepared this quick reference guide to help firms that have identified a location as a non-registered private residence to answer the RSL question on Form U4.

In the securities world today, there is little daylight between money laundering and fraud. On this episode, we learn how FINRA’s Special Investigations Unit works to detect and investigate cases of illicit finance and market abuse, as well as how they proactively identify and mitigate threats.

Companies that use Fortinet’s FortiManager product could be exposed to a remote, unauthenticated attacker executing arbitrary code or commands due to a critical product vulnerability (CVE-2024-47575), according to two recent alerts from the Cybersecurity & Infrastructure Security Agency (CISA).

Gen X is often called the Forgotten Generation given how often they’re overlooked in favor of conversation around boomers, millennials or now even Gen Z. But on this episode, Gen X is the one in the spotlight as we dig into the financial health of those born between 1965 and 1980 and, importantly, their perception of their financial well-being.

FINRA alerts member firms that the New York Stock Exchange (NYSE) has filed a rule change for immediate effectiveness to harmonize NYSE Rule 3110 (Supervision) with FINRA Rule 3110 (Supervision) to permit eligible NYSE member organizations to participate in FINRA’s Remote Inspections Pilot Program and to adopt FINRA’s Residential Supervisory Location (RSL) classification.

The term “metaverse” has attracted significant attention and curiosity in recent years from the media, entertainment and technology sectors. Though the term has no concrete definition, and interpretations may differ, the metaverse is generally viewed as the next evolution of today’s internet.

On Oct. 16, 2024, the Cybersecurity & Infrastructure Security Agency (CISA) released Cybersecurity Advisory - AA24-290A, which provides threat actors’ tactics, techniques, and procedures (TTPs) and indicators of compromise (IOCs) associated with Iranian cyber actors. In light of the historical proclivity of Iranian threat actors targeting the financial services industry, FINRA is sharing this information with member firms.

Why do we engage with scammers? What makes one person more likely to engage than the next? Of those that engage, what makes someone more likely to lose money? On this episode, we dig into the research on these important questions with three academics in the field.

This notification warns member firms of an ongoing phishing campaign that began on or around Oct. 9 that involves fraudulent emails purporting to be from FINRA executives, in some instances containing a PDF attachment. These emails are not from FINRA, and firms should delete them and consider blocking their domains.

FINRA has implemented Form BR (Uniform Branch Office Registration Form) functionality enhancements for amendments to Form BR submissions for existing locations that will allow firms to account for the RSL designation by de-selecting a location’s registration for FINRA and the jurisdiction that accepts the RSL designation, while continuing to pre-select the location’s registration or notice filing in a jurisdiction or the New York Stock Exchange (NYSE), or both, that has not accepted the RSL designation. 

Falling victim to a scam carries more than just a financial impact. It can be an isolating experience and exact a mental and emotional toll. On this episode, we hear about the experience of two real life victims and their efforts to recover from their loss with the help of the Cybercrime Support Network.

The FINRA Board announced two newly appointed Industry Governors, received an update on FINRA’s Enforcement Digital Transformation and continued discussions around FINRA’s long-term financial planning.

Last week, FINRA CEO Robert Cook spoke at a conference hosted by the FINRA Foundation to underscore the importance of working together to disrupt the cycle of fraud. He highlighted specific areas for further coordination and announced that FINRA will reach out operators of existing regulatory databases to explore ways to create a one-stop shop resource for investor research. On this episode, we tune in to his remarks.

Read CEO Robert Cook’s email to firms previewing topics the Board is scheduled to discuss at the September 2024 FINRA Board of Governors Meeting.

A new question has been added to the Uniform Application for Securities Industry Registration or Transfer (Form U4) to identify Residential Supervisory Locations (RSLs) for purposes of complying with FINRA Rule 3110.19(d), as amended (RSL Question). Firms that have identified a location as a non-registered private residence are required to answer the RSL Question as either “Yes” or “No” by December 26, 2024. The previously announced October 15, 2024 date in Regulatory Notice 24-02 has been replaced by the December 26, 2024 deadline. Further information on Form U4’s new RSL Question and the related deadline is available in File No. SR-FINRA-2024-015 and in the Frequently Asked Questions about Residential Supervisory Locations (RSLs).

This Guidance assists member firms with continuing membership applications (CMAs) as part of the implementation of a succession plan or an exit from the broker-dealer securities business (which may or may not be connected to a succession plan).

The Cyber and Analytics Unit (CAU) within FINRA’s Member Supervision program highlights recent cybersecurity risks at third-party providers (commonly referred to as third-party vendors) impacting member firms.

FINRA’s Examinations team has undertaken changes to create efficiencies before, during and after the exam process to continuously improve the program. On this episode, three senior leaders of the team join us to detail some of the recent changes, including the introduction of thematic reviews, changes to the post-exam closeout process and more.

As part of FINRA’s mission to protect investors and promote market integrity, we are focused on addressing the regulatory challenges presented by our member firms’ crypto asset activities. Crypto assets—also known as digital assets—are assets that are issued or transferred using distributed ledger or blockchain technology. They include, but are not limited to, so-called virtual currencies, coins, and tokens. A particular crypto asset may or may not meet the definition of a “security” under the federal securities laws.

FINRA's Membership Application Program serves as the entry point to FINRA membership for firms that meet 14 different standards for admission. On this episode, we hear how the group ensures members and would-be members adhere to these standards to safeguard the integrity of the market and ensure Americans can invest with confidence.

Last summer, we introduced listeners to FINRA’s Crypto Hub, an enterprise-wide strategy for keeping up with the evolving crypto asset regulatory landscape. On this episode, we have three members of the hub join us to provide an update on that work to dig into the results of a recent survey of member firms regarding their crypto asset touch points to tell us about the new spot Bitcoin ETP market and more.

The Cyber and Analytics Unit (CAU) within FINRA’s Member Supervision program highlights recent reports of a CrowdStrike service outage affecting Microsoft operating systems. FINRA continues to monitor the outage.

FINRA has implemented Form BR (Uniform Branch Office Registration Form) functionality enhancements for initial Form BR submissions that allow firms to de-select FINRA when establishing a new location designated as an RSL that needs to be registered or notice filed with a jurisdiction, the New York Stock Exchange (NYSE), or both, as a branch office. Further information on these functionality enhancements and how firms should complete an initial Form BR is available in the Frequently Asked Questions about Residential Supervisory Locations (RSLs). 

FINRA regulates a critical part of the securities industry – member brokerage firms doing business in the United States. In an effort to increase public awareness and understanding about the broad range of FINRA-registered firms and individuals, FINRA shares an annual snapshot of some of the data collected in the course of its work.