September 2020 Board Update

September 18, 2020

FINRA’s Board of Governors met virtually last week, and I am pleased to share some updates from our discussions.

The Board approved two rulemaking items, which are listed below. In addition, FINRA staff provided updates on FINRA’s operations, including the Examination and Risk Monitoring Program Transformation and the Market Regulation Enforcement program.

Also at the September meeting, the Board continued its engagement with key stakeholders. The Board was joined by Securities and Exchange Commission (SEC) Chairman Jay Clayton and SEC Commissioner Allison Herren Lee—her first visit with the FINRA Board since her term began in July 2019—to discuss various regulatory policies and initiatives.

For more information about the discussions that took place during the September FINRA Board of Governors meeting, please watch the September 2020 Board Report video. Our next meeting is December 2 – 3. 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 September 2020 Board Meeting

Proposed Amendments to Financial Exploitation of Specified Adults Rule
The Board approved the publication of a Regulatory Notice soliciting comment on proposed amendments to FINRA Rule 2165 (Financial Exploitation of Specified Adults). The proposal would permit: (1) extending the hold period if the member firm had reported the matter to a state regulator or agency or a court of competent jurisdiction; and (2) placing temporary holds on transactions in securities when there is suspected financial exploitation.

Proposal Relating to the Use of Electronic Signatures
The Board approved the filing with the SEC of proposed amendments to FINRA Rule 1010 (Form U4 Filing Requirements) to permit firms to obtain an electronic signature on the Uniform Application for Securities Industry Registration or Transfer (Form U4) and a conforming amendment to FINRA Rule 2263 (Arbitration Disclosure to Associated Persons Signing or Acknowledging Form U4).

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