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Guidance
- Regulatory Notice
- Treasury Rule
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Upcoming Deadlines and Effective Dates
- FINRA Requests for Comment
- SEC Request for Comment
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Education and Compliance Programs
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FINRA’s new Complex Investigations and Intelligence (CII) team and Cyber and Analytics Unit (CAU) are shifting how Member Supervision’s National Cause and Financial Crimes Detection Program leverages intelligence and analytics to drive decision making and operations. The latest episode of FINRA Unscripted features Omer Meisel, Vice President of CII, and Brita Bayatmakou, Senior Director of CAU, discussing how these changes will help FINRA better deliver on its mission. Listen to the podcast.
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FINRA is holding a special meeting of large firm members on or about October 31, 2022, to elect one individual to fill a vacant Large Firm Governor seat on the FINRA Board of Governors. Election Notice 08/09/22 announces the FINRA Nominating & Governance Committee nominee—Penny Pennington, Managing Partner at Edward Jones—and informs individuals of the procedures for being included as a petition candidate on the ballot.
In addition to this election, FINRA is holding an election for small firms to vote for a governor on FINRA’s Board. Election Notice 07/20/22 provides details on the election process and the two candidates for the small firm governor seat:
- Stephen A. Kohn, President, DMK Advisors Group, Inc.
- Linde Murphy, President & Chief Compliance Officer, M.E. Allison & Co., Inc.
Small firms that are members of FINRA as of the close of business on Tuesday, July 19, 2022, are eligible to vote in this election and may do so via the Internet, telephone or U.S. mail, or by attending the Annual Meeting in person. Watch for emails from FINRA’s Election Agent (from the email address “[email protected]”) with specific voting instructions. If you need additional assistance with voting, contact FINRA’s Office of the Corporate Secretary via email or call (202) 728‑8949.
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FINRA is offering five scholarships to industry professionals from small firms to attend the FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)® program. The scholarship covers full tuition for the entire CRCP program, including room and board. The Small Firm Scholarship application period is now open through September 16, 2022. For more information, including eligibility requirements, the selection process and our new application form, please visit our Small Firm Scholarship web page.
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Guidance
Regulatory Notice
Following the NSCC’s change to ACATS allowing a receiving member (the firm slated to receive the customer’s account) to use the “receiver delete” function to remove alternative investments from an ACATS transfer, FINRA published a Regulatory Notice reminding firms of their obligations under FINRA Rule 11870 (Customer Account Transfer Contracts). See Regulatory Notice 22-19.
Treasury Rule
On July 7, 2022, Treasury issued a final rule that makes several technical amendments designed to modernize the auction regulations, enhance their clarity and improve consistency in the use of terminology. The amendments became effective on August 8, 2022. Accordingly, the non-competitive bidding and award limits for all marketable Treasury securities auctions have increased from the previous limit of $5 million to $10 million.
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Upcoming Deadlines and Effective Dates
FINRA Requests for Comment
FINRA is soliciting comment on a proposal to establish a new trade reporting requirement for transactions in over-the-counter options on securities with terms that are identical or substantially similar to listed options. FINRA is proposing to require firms to report this information to FINRA on a daily basis (end-of-day) for regulatory purposes only. Comments are due September 20, 2022. See Regulatory Notice 22-14.
FINRA is soliciting comment on a proposal to amend Rule 6730 to reduce the Trade Reporting and Compliance Engine (TRACE) trade reporting timeframe for transactions in all TRACE-Eligible Securities that currently are subject to a 15-minute reporting timeframe. Members would be required to submit a report to TRACE as soon as practicable (as is currently the case), but no later than one minute from the time of execution, for transactions in corporate bonds, agency debt securities, asset-backed securities and agency pass-through mortgage-backed securities traded to-be-announced for good delivery. Comments are due October 3, 2022. See Regulatory Notice 22-17 for more information.
SEC Request for Comment
The SEC requests comment on FINRA’s proposal to adopt new Supplementary Material .19 (Residential Supervisory Location) under FINRA Rule 3110 (Supervision) that would align FINRA’s definition of an office of supervisory jurisdiction (OSJ) and the classification of a location that supervises activities at non-branch locations with the existing residential exclusions set forth in the branch office definition to treat a private residence at which an associated person engages in specified supervisory activities as a non-branch location, subject to safeguards and limitations. In accordance with Rule 3110(c), as a non-branch location, a Residential Supervisory Location would become subject to inspections on a regular periodic schedule, which is presumed to be at least every three years, rather than an annual inspection requirement required of OSJs and other supervisory branch offices. Comments are due August 23, 2022. See the Federal Register notice.
Treasury Department Notice and Request for Information
The U.S. Department of the Treasury has issued a Request for Information seeking comment on additional post-trade transparency for data regarding secondary market transactions in U.S. Treasury Securities, including the potential benefits and risks of several potential ways to build on existing public transparency. See the Notice Seeking Public Comment. Comments are due 60 days after the date of publication of the Notice in the Federal Register.
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Education and Compliance Programs
Firm compliance personnel who are new to registration and licensing—or would like to become more familiar with navigating related systems—are invited to join FINRA virtually for an upcoming training. Each training session runs noon to 5 p.m. ET on two consecutive half days. Upcoming sessions are scheduled for Wednesday, Oct. 5 and Thursday, Oct. 6; and Wednesday, Nov. 9 and Thursday, Nov. 10. See the Virtual Training Schedule & How to Register page for more information.
The FINRA Advertising Regulation Conference is back! Join us in Washington, DC, on October 20-21, 2022, for a conference designed specifically for new and experienced communications compliance professionals. Participate in forward-looking discussions on current practices, policies, priorities and rulemaking. Plus, use this opportunity to network with industry peers and meet one-on-one with Advertising Regulation Department staff during office hours.
Register today for the 2022 Small Firm Conference. Join us in Santa Monica, CA, or participate virtually on November 9-10, for the opportunity to discuss small firm topics, share insights and effective practices, and hear detailed exchanges on industry and regulatory updates.
Week II of the 2022 FINRA Institute at Georgetown CRCP® Program is almost sold out. Reserve your spot now and join us in Washington, D.C., on November 13-18. View the detailed schedule for a look at what sessions are being held and the participating faculty.
Thinking ahead and want to reserve your spot for next year? Registration for 2023 Week I is now open.
Register for all of FINRA’s upcoming events:
- FINRA Registration Systems Foundation Training
- Wednesday, October 5 and Thursday, October 6 | noon to 5 p.m. ET | Virtual
- Wednesday, November 9 and Thursday, November 10 | noon to 5 p.m. ET | Virtual
- FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program
- Week II | November 13 – 18, 2022 | Washington, DC
- Advertising Regulation Conference | October 20 – 21, 2022 | Washington, DC and Virtual
- Small Firm Conference | November 9 – 10, 2022 | Santa Monica, CA and Virtual
- 2023 Annual Conference | May 16-18, 2023 | Washington, DC
- FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program
- Week I | July 16 – 21, 2023 | Washington, DC
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