December 2023 Board Update

December 15, 2023

The FINRA Board of Governors held its final meeting of the year last week, and I am pleased to share some updates from our discussions.

During the meeting, the Board approved two rule proposals (listed below), approved FINRA’s 2024 proposed budget, and continued discussions around FINRA’s financials, including expenses and the drawdown of reserves. In addition, the Board appointed new members to the Small Firm Advisory Committee (SFAC) and National Adjudicatory Council (NAC). In the coming weeks, we will publish an Election Notice announcing these newly appointed members, as well as the newly elected members of the SFAC, NAC and Regional Committees.

The Board also previewed the 2024 FINRA Annual Regulatory Oversight Report—formerly the Report on FINRA’s Examination and Risk Monitoring Program—which will provide firms with key insights and observations from recent oversight activities of FINRA's Regulatory Operations to help inform the development and operation of firms’ compliance programs. We anticipate publishing the report next month.

The Board also received an update on FINRA’s National Cause and Financial Crimes Detection Program (NCFC) and FINRA’s recent cybersecurity activities, which include the recent release of several updated tools to assist firms with their ongoing cybersecurity efforts. 

Our next meeting is scheduled for March 6-7, 2024. More information regarding the Board's operations, including the membership and responsibilities of its committees, is available at www.finra.org/governance. 

Sincerely,

Robert W. Cook
President and CEO
 

Rulemaking Items Approved at the December 2023 Board Meeting

  • Applicability of Document Production Lists in Simplified Customer Arbitrations – The Board approved proposed amendments to the Code of Arbitration Procedure for Customer Disputes to clarify that Document Production Lists apply in simplified customer arbitrations in which the customer requests a regular hearing, and to give customers the option to request for Document Production Lists to apply in the remaining types of simplified arbitrations.
     
  • Centralized Hosting of SEC Rule 605 Reports – The Board approved proposed rule amendments to require members to submit Regulation NMS Rule 605 execution quality reports to FINRA for central publication on the FINRA website.

Visit FINRA’s website for more information about FINRA’s rulemaking process.