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Now Available: 2025 FINRA Annual Regulatory Oversight Report

January 29, 2025

Features
  • Now Available: 2025 FINRA Annual Regulatory Oversight Report 
    This year’s report covers 24 different topics, including new content dedicated to the third-party risk landscape, extended hours trading, and sales practice and Reg BI compliance in connection with complex products (e.g., Registered Index-Linked Annuities), as well as artificial intelligence, investment fraud that directly targets investors and more. We publish the report at the beginning of each year to provide insight into our observations around systemic risk and raise awareness of common challenges and compliance gaps, which firms can use to strengthen their compliance programs. Read the press release and listen to the related episode of the FINRA Unscripted podcast series. 
     
  • Guidance to Members Affected by California Wildfires 
    FINRA recently published a notice providing guidance to members impacted by the wildfires in California, which FINRA is closely monitoring. The guidance includes information on relief from certain regulatory requirements, in such areas as emergency office relocations, regulatory filings and inquiries, fees, customer communications, holding customer mail, delivery of customer checks, donations, examination windows and registered personnel engaged in active military duty. 
     
  • Beware of Stock Fraud in the Wake of Natural Disasters 
    In a recent Investor Insight, FINRA highlighted ways that investors can protect themselves from disaster-related scams. The article is available here, and firms are welcome to share it and other FINRA Investor Insights with customers. 
     
  • ICYMI: Protecting Your Investment Accounts From Gen AI Fraud 
    In another recent Investor Insight, FINRA highlighted ways in which fraudsters are using generative artificial intelligence (Gen AI) tools to defraud unsuspecting investors. The article offers tips investors can take to help protect their accounts.
Guidance, Upcoming Deadlines, Effective Dates
New
Reminders
  • Consolidated Audit Trail (CAT) Fees: As of Jan. 1, the Historical CAT Cost Recovery Assessment 1 and Prospective CAT Cost Recovery Fee 2024-1 are no longer in effect for transactions in eligible securities executed by FINRA member CAT executing brokers. Also beginning Jan. 1, a new Prospective CAT Cost Recovery Fee—Prospective CAT Cost Recovery Fee 2025-1—is applied to members executing brokers' transactions. 
     
  • 2025 and Q1 2026 Reports Filing Due Dates: Upcoming due dates have been announced for filings related to the Annual Report, Financial and Operational Combined Uniform Single (FOCUS), Form Custody and supplemental FOCUS Report. The next one is today (Jan. 29). These filings must be submitted electronically through FINRA Gateway. 
     
  • Vote for National Adjudicatory Council (NAC) Seats: Members from large firms and small firms are eligible to vote between now and Feb. 10 for candidates running for the NAC seat in the same size category as their own firm. The names of the candidates and their profiles are listed in the Election Notice. Voting instructions were sent by email on Jan. 10 from [email protected]
     
  • 2025 Third-Party Vendor Request: Firms are requested to provide FINRA with information about their vendors and banks via the 2025 Third-Party Vendor Request form in FINRA Gateway by Feb. 25. Register to attend an upcoming webinar to address frequently asked questions about this request. 
     
  • Rule Amendments Regarding Arbitration Document Production Lists: FINRA amended its Code of Arbitration Procedure for Customer Disputes to allow customers to decide whether to use Document Production Lists in “paper cases” (i.e., those without a hearing) and special proceedings. The amendments go into effect for arbitration cases filed on or after March 3 of this year. 
     
  • Comment on Proposed Changes to Corporate Financing: Members and other stakeholders have until March 20 to comment on proposed amendments to FINRA Rules 5110 (Corporate Financing Rule—Underwriting Terms and Arrangements), 5121 (Public Offerings of Securities With Conflicts of Interest) and 5123 (Private Placements of Securities) that would make substantive, organizational, and terminology changes. 
     
  • Four New Forms in FINRA Gateway: Visit FINRA’s website for more information about the new forms that are now available in FINRA Gateway. The compliance date for using them is March 31. Register to attend an upcoming webinar featuring a high-level overview and demonstration of the new forms. 
     
  • Amendments to FINRA Rule 3240: Updates to FINRA’s Borrowing From or Lending to Customers Rule go into effect April 28 to strengthen the general prohibition against borrowing and lending arrangements between registered representatives and their customers, narrow some exceptions, modernize the “immediate family” definition, and more.
Disciplinary Actions
  • FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The January 2025 Monthly Disciplinary Actions are available here.
Education and Compliance Programs      
FINRA Webinar: New/Updated Regulatory Notifications | Feb. 4 | 4:30 p.m. - 5:15 p.m. ET
 
FINRA Webinar: Third-Party Vendor Request—FAQ | Feb. 10 | 4:30 p.m. - 5:15 p.m. ET
 
Virtual Registration Systems Foundation | March 12-13 | Virtual Event
 
2025 FINRA Annual Conference | May 13-15 | Washington, DC | Hybrid Event
 
Small Firm Conference | Oct. 9-10 | Dallas, TX | Hybrid Event
Resources
Member Firm Hub – The latest guidance, resources, educational opportunities and more.
 
Membership Application Program (MAP) Tools – Guidance and other resources to help current members prepare for their continuing membership application (CMA) and new applicants prepare for a new member application (NMA).
 
FINRA101 – An investor-focused video series firms can leverage to help customers avoid scams, understand trusted contacts and more.
 
FINRA Unscripted – A biweekly podcast that discusses a range of topics important to the securities industry.
 
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About FINRA
FINRA is a not-for-profit organization dedicated to investor protection and market integrity. FINRA regulates one critical part of the securities industry—member brokerage firms doing business with the public in the U.S. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.
Regulatory Contacts
FINRA By-Laws require member firms to maintain an email account on behalf of their executive representatives, to facilitate firm notification of important information. In light of this, requests from executive representatives to be removed from this email list cannot be honored.
 
Firms wishing to change the name or email address of their executive representative or designated assistant should use the FINRA Contact System: http://www.finra.org/FCS.
 
Subscribers
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