December 2016 Board Update

December 15, 2016

Dear Executive Representative:

This week, the FINRA Board of Governors met to discuss a number of items, including two rule proposals, which are provided below.

I hope you will take a moment to watch the video report, in which Chairman of the Board Jack Brennan, Finance Committee Chair John Davidson and I provide an overview of key issues the Board discussed at the meeting.

I welcome hearing from you and will continue to keep you posted on FINRA’s activities.

Sincerely,

Robert W. Cook
President and CEO

Rulemaking Items Discussed at the December 2016 Board Meeting

Procedural Rules Concerning Eligibility Proceedings
The Board authorized FINRA to file with the SEC proposed amendments to FINRA’s procedural rules governing eligibility proceedings. Specifically, the amendments would grant FINRA discretion to accept statutory disqualification applications involving an individual’s willful failure to disclose a bankruptcy, judgment or lien, and to file such approvals directly with the SEC. Currently, FINRA’s acceptance of such applications is subject to review by the chairperson of the Statutory Disqualification Committee, acting on behalf of the National Adjudicatory Council, and then filed with the SEC.  

Simplified Arbitration
The Board authorized FINRA to file with the SEC proposed amendments to Rules 12800 and 13800 (Simplified Arbitration) to amend the hearing provisions to provide an additional shorter telephonic hearing option for parties in arbitration.