Guidance
• FINRA Rule 2070(a) FAQ
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Disciplinary Actions
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Upcoming Deadlines and Effective Dates
• FINRA Rule 6151 Testing
• SEC Requests for Comment
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Education and Compliance Programs
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FINRA Statement to Correct Misinformation About New Residential Supervisory Location Rule
Read FINRA's statement to correct misinformation from some firms stating that FINRA's new Residential Supervisory Locations and Remote Inspection Pilot Program rules will require them to bring their workforce back to the office full time. The rules are intended to provide member firms greater flexibility — not less — to allow eligible registered persons to work from home, following the expiration of temporary COVID-19 relief from existing requirements.
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Small Firm Conference Call
Register for the upcoming Small Firm Conference Call on Monday, June 3, at 4:30 p.m. ET. FINRA President and CEO Robert Cook, Vice President of Member Relations and Education Kayte Toczylowski and FINRA senior staff will discuss the intersection of cybersecurity, fraud and financial crimes. Staff also will highlight resources, tools and tips for mitigating these risks. Registration is open to all member firms.
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May Board of Governors Meeting Updates
Read FINRA CEO Robert Cook’s post-meeting email to firms for a readout on the May FINRA Board of Governors meeting, which included the approval of FINRA’s 2023 Annual Financial Report and new Advisory Committee appointments.
| | Guidance New: - Transactions Involving FINRA Employees and Delivery of Duplicate Statements to FINRA
FINRA published a new FAQ providing firms additional guidance on Rule 2070(a) (Transactions Involving FINRA Employees). The FAQ states that a member that provides FINRA an eFeed of account transaction and position data at a FINRA employee’s request should not also send duplicate statements for the account to FINRA. Read the FAQ for more details, including requirements for members that do not provide an eFeed for FINRA employees’ accounts.
Reminders: - Threat Intelligence Product on Protecting Senior Investors
Read the latest Threat Intelligence Product for an overview of FINRA’s observations on seniors’ vulnerability to investment scams, common tactics scammers use to target victims and additional resources to help protect all investors from fraud.
- Remote Inspections Pilot Program Guidance
FINRA recently published a new Remote Inspections Pilot Program key topics page to provide firms additional guidance on the adoption of FINRA Rule 3110.18. The new rule, which goes into effect on July 1, establishes a voluntary, three-year remote inspections pilot program to allow eligible member firms to fulfill their Rule 3110(c)(1) inspection obligation of qualified branch offices and locations remotely, without an on-site visit, subject to specified terms.
- Residential Supervisory Locations Guidance
Visit FINRA’s recently published Residential Supervisory Locations key topics page for FAQs, checklists and additional guidance on the adoption of FINRA Rule 3110.19, which goes into effect on June 1. The rule will permit firms to designate an associated person’s private residence where certain supervisory activities are conducted to be considered a “non-branch” location of the firm.
- FAQs on Members’ Use of Artificial Intelligence in Public Communications
Read FINRA’s newly published FAQs about member firms’ use of artificial intelligence (AI) in communications with the public on the Frequently Asked Questions About Advertising Regulation page.
- Treasury Call for Large Position Reports
The U.S. Treasury Department will conduct a call for large position reports sometime over the next three months. Treasury is offering a free virtual workshop on June 7, 1:00-2:00 p.m. ET, about its Large Position Reporting rules, which apply to all U.S. and foreign entities that may control a large position in a specified Treasury security. To register for the workshop, complete the online form. The workshop is closed to the press.
- Podcast on Insider Trading Detection Program
Listen to the latest episode of FINRA Unscripted for information about the Insider Trading Detection Program, which uses sophisticated technology and analytics to monitor 100 percent of trading in stocks, options and bonds for potentially suspicious activity around material news events.
- New FINRA.org Homepage
FINRA is conducting a beta test of a redesigned FINRA.org homepage. If you would like to view it and provide feedback, visit the site and follow the pop-up prompts on the bottom right.
| | Disciplinary Actions FINRA publishes disciplinary actions to remind registered representatives and firms of specific conduct that violates FINRA rules and may result in disciplinary action. The May 2024 Monthly Disciplinary Actions are available here.
| | Upcoming Deadlines and Effective Dates FINRA - As a reminder, FINRA Rule 6151 (Disclosure of Order Routing Information for NMS Securities) goes into effect on June 30. The rule requires members to submit to FINRA for centralized publication the order routing reports required under the Securities and Exchange Commission’s (SEC) Rule 606(a) (Rule 606(a) Reports), and FINRA will centralize access to all Rule 606(a) Reports on its website. To learn more, visit FINRA Rule 6151 – Centralization of SEC Rule 606(a) Reports. In addition, testing for this rule change will begin on June 5. If you are interested in participating in the testing, please fill out this form for access.
SEC Requests for Comment - The SEC requests comment on FINRA’s proposed rule change to adopt the new FINRA Rule 6500 Series (Securities Lending and Transparency Engine (SLATE)) to require reporting of securities loans and provide for public dissemination of loan information. Comments are due by May 28. See the Federal Register notice.
| | Education and Compliance Programs Register for upcoming events: |
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