Update: FINRA Board of Governors Meeting

The FINRA Board of Governors held its first meeting of the year last week, and I am pleased to share some updates from our discussions, including the election of a new Board Chair. Eric Noll is stepping down as Chair to pursue an opportunity that would conflict with his role as a Public Governor. To succeed him, the Board elected Scott A. Curtis, who has served as a Governor and Large Firm Representative since 2023.

 

The Board also appointed two new members to the National Adjudicatory Council: Richard Kuhlman, Senior Vice President and Chief Legal Officer, Cambridge Investment Research, Inc. (Large Firm NAC Member); and Trinity Lee, President and Executive Director, Heim, Young & Associates, Inc. (Small Firm NAC member). Their engagement will provide essential support to FINRA’s regulatory processes. We welcome the new members and look forward to their input.

As is customary for the first meeting of the year, the Board approved the allocation of prior-year fine monies to various capital initiatives in accordance with FINRA’s Financial Guiding Principles. Fines are collected and accounted for separately from monies designated in our operating budget, and their use is subject to special governance procedures, use restrictions and transparency requirements. As part of our broader approach to financial transparency, we will release details about the allocations in the upcoming Report on the Use of 2024 Fine Monies.

 

The Board also received a briefing on the examinations and investigations programs, including an update on the initiative to modernize the technology used by FINRA’s examination teams. 

 

Consistent with FINRA’s commitment to continuously improving our regulatory standards, the Board also considered rule proposals to modernize requirements and eliminate unnecessary burdens while maintaining investor protection and market integrity. The Board approved the publication of a Regulatory Notice soliciting comment on a revised proposed Rule 3290 (Outside Activities Requirements) to replace FINRA Rules 3270 (Outside Business Activities of Registered Persons) and 3280 (Private Securities Transactions of an Associated Person). The revised proposal would replace two rules with a single rule that provides clarity and reduces unnecessary compliance burdens for member firms in reviewing outside activities of their associated persons.

 

The Board also considered updates to the TRACE reporting timeframes, to reduce undue operational burdens and complexity consistent with my recent blog. 

 

Our next meeting is scheduled for June 4-5, 2025. More information regarding the Board’s operations, including the membership and responsibilities of its committees, is available on our website.

 

Sincerely,

Robert W. Cook 
FINRA CEO