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FINRA Releases Annual Financial Report

July 3, 2019
Volume 27



  • Regulatory Notice
  • UPC Advisory
disciplinary actions

Disciplinary Actions


Upcoming Deadlines and Effective Dates
  • FINRA Elections

Education and Compliance Programs

Check out the new Over the last several months, we have been building a new and improved Throughout the month of July, we invite you to check out the new features and tell us what you think. Your feedback is incredibly important in ensuring that when it launches, the new not only captures a new design, but serves as the best-in-class utility you need to comply with rules, leverage investing tools and more.

FINRA reminds firms to register for CAT reporting. FINRA issued Regulatory Notice 19-19 to remind firms they must register with FINRA CAT, LLC for reporting to the Consolidated Audit Trail (CAT). Initial CAT registration ran through June 27, 2019. FINRA urges any member firm with a CAT reporting obligation that has not yet registered to do so as soon as possible so the necessary entitlements for CAT reporting can be established in time for testing, which is scheduled to commence in December 2019.

All questions regarding CAT registration should be directed to the FINRA CAT Helpdesk at (888) 696-3348 or [email protected].


FINRA has released its audited Annual Financial Report. In addition to describing FINRA's finances and operations for 2018, the report also reaffirms FINRA’s Financial Guiding Principles. If you would like to request a printed copy of the Annual Report be sent to you by mail, please call FINRA MediaSource at (240) 386-4200.


Margin Requirements for Exchange-Traded Notes

Pursuant to FINRA Rule 4210(f)(8)(A), FINRA is establishing higher strategy-based margin requirements for exchange-traded notes (ETNs) and options on ETNs in light of the complex nature of these products. The new requirements for initial and maintenance margin are detailed in Regulatory Notice 19-21. In addition, FINRA is clarifying that ETNs and options on ETNs are not eligible for portfolio margining under FINRA Rule 4210(g). If these measures would result in undue hardship to a firm or its customers, the firm may submit a written request to FINRA for additional time to comply with this Notice.

Update: FINRA Rule 4530 (Reporting Requirements) Frequently Asked Questions

FINRA updated the Rule 4530 Frequently Asked Questions to address the use of three Problem Codes when reporting written customer complaints.


UPC Advisory

The following UPC Advisory was posted in the past week:

  • UPC #23-19 Exco Resources, Inc. (XCOOQ)
 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 item on the website this week:

  • FINRA announced that it has sanctioned Summit Brokerage Services, Inc. a total amount exceeding $880,000 for supervisory failures, including approximately $558,000 in restitution to customers whose accounts were excessively traded by a former registered representative of the firm who was previously barred by FINRA.

 Upcoming Deadlines and Effective Dates

FINRA Elections

FINRA recently issued Election Notice 5/24/19 to inform member firms of an upcoming election to fill one Large Firm Governor seat and one Small Firm Governor seat on the FINRA Board of Governors (Board). The FINRA Nominating Committee nominated the following individuals who accepted the committee’s nominations:

  • Large Firm Governor Candidate: Andrew S. Duff, Board of Directors, Piper Jaffray & Co.
  • Small Firm Governor Candidate: Robert A. Muh, CEO, Sutter Securities

A petition period is currently underway during which eligible individuals who were not so nominated may seek to qualify to be included on the ballot for these elections. The petition procedures are set forth in the Election Notice. Petitions are due by July 8, 2019.

The Board election will begin in mid-July and conclude at FINRA’s annual meeting of member firms which will take place in August. A formal notice of the meeting, including the precise date, time and location, will be mailed to executive representatives on or about July 19, 2019.


 Education and Compliance Programs

Free on-demand recordings of sessions from FINRA's 2019 Annual Conference are now available to member firms and CRCP graduates.

Register today for the 2019 FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)® program—comprised of two weeklong residential courses, which are delivered at Georgetown University's McDonough School of Business in Washington, DC.

Week I · July 21–26, 2019 (Registration closes July 14)
Week II · November 17–22, 2019

Register today for the 2019 Institutional Conference on September 11 in New York. The event will bring together industry experts, executives and policymakers to discuss topics affecting institutional firms across the country. Download the agenda.

FINRA is hosting several upcoming Half-Day Compliance Boot Camps, AML Half-Day Seminars and Cybersecurity Half-Day Seminars across the country.

Half-Day Compliance Boot Camps

  • July 16, 2019 | Boca Raton, FL
  • August 8, 2019 | Del Mar, CA
  • September 17, 2019 | Minneapolis, MN
  • September 17, 2019 | Baltimore, MD
  • September 25, 2019 | Stamford, CT

AML Half-Day Seminar

  • September 19, 2019 | Chicago, IL

Cybersecurity Half-Day Seminars

  • August 27, 2019 | Costa Mesa, CA
  • September 26, 2019 | Boca Raton, FL

District compliance events are designed for compliance and legal professionals at FINRA member firms, and offer an opportunity to hear about current regulatory issues while engaging with District Office staff. Upcoming events will be held in the Los Angeles, Woodbridge and Atlanta District Offices.

Review the compliance calendar to see a complete list of events.

Also coming up:

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Regulatory Contacts
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