FINRA CEO Robert Cook Delivers Keynote Speech on Fighting Fraud

September 18, 2024

Features
  • FINRA CEO Robert Cook Delivers Keynote Speech on Fighting Fraud 
    In an address to a FINRA Foundation conference last week, Cook detailed our commitment to working with all stakeholders to develop innovative, proactive ways of fighting fraud and protecting investors. He called for creating a one-stop shop for investors to research who they are considering doing business with and for greater coordination in the financial industry’s collective communications to consumers regarding fraud tactics. Read the speech here, or tune in to the latest episode of the FINRA Unscripted podcast to listen to Cook deliver it. 
     
  • New Question on Form U4 to Identify RSLs and Updated Deadline 
    Firms that have designated a non-registered private residence will be required to answer a new question on Form U4—the Uniform Application for Securities Industry Registration or Transfer—to identify Residential Supervisory Locations (RSLs) in compliance with amended FINRA Rule 3110.19(d). Those firms now are required to answer the RSL question as either “yes” or “no” by Dec. 26. This replaces the previous Oct. 15 deadline. We have updated the RSL frequently asked questions to help members understand and implement this change. 
     
  • FINRA Board of Governors Meeting Preview 
    During its fall meeting this week, the FINRA Board of Governors will receive an overview of recent market frauds and an update on FINRA’s Enforcement Digital Transformation, as well as continue discussions around FINRA’s long-term financial planning. 
     
  • Three Governors Elected to FINRA Board 
    FINRA firms recently elected to the FINRA Board of Governors John Vaccaro (Chair and CEO, MML Investors Services; Head of MassMutual Financial Advisors) and Jennifer Szaro (Chief Compliance Officer, XML Securities) to represent large and small firms, respectively, and re-elected James Crowley (CEO, Pershing Advisor Solutions; Senior Executive Vice President, Global Head of BNY Pershing) for a second term representing mid-size firms. 
     
  • Reminder for Select Firms: Customer Information Request 
    Select firms that were delivered a mid-August Customer Information Request via FINRA Gateway are reminded to respond by Sept. 30. The purpose of the request is to obtain information regarding the types and numbers of customers serviced by those firms, including institutional, non-institutional and foreign customers. Firms should check FINRA Gateway for the request, and those who received it should respond by the date above using information as of this past June 30 and contact their Risk Monitoring Analyst with any questions.
Guidance, Upcoming Deadlines, Effective Dates
New
  • Form U4 to Identify RSLs: See entry above announcing a new question on Form U4 to identify Residential Supervisory Locations (RSLs) and an updated deadline of Dec. 26.
Reminders
  • Cyber Advisory: FINRA alerted members that we have been observing increased cyberattacks and outages since 2023 at third-party providers that members use, and provided resources to help mitigate these risks. 
     
  • Succession Planning Resource: Member firms now have a new resource to assist them with continuing membership applications (CMAs) as part of the implementation of a succession plan or an exit from the broker-dealer securities business. 
     
  • SEC Request for Comment: The SEC issued an order on Aug. 21 instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change to amend FINRA Rule 12800 of the FINRA Code of Arbitration Procedure for Customer Disputes. The proposed rule change, as subsequently modified by Partial Amendment No. 1, would address the applicability of the Document Production Lists to simplified customer arbitrations administered under FINRA Rule 12800. Rebuttal comments are due by Oct 1. 
     
  • SFAC and Regional Committee Elections: FINRA has made separate calls for candidates to run for open seats on the Small Firm Advisory Committee (SFAC) and FINRA’s Regional Committees. Read the SFAC and Regional Committee Election Notices for details, including eligibility requirements. Eligible candidates will be included on the appropriate ballots if they submit a candidate profile form to FINRA’s Corporate Secretary by Oct. 3. 
     
  • National Adjudicatory Council (NAC) Election: The deadline to submit petitions to become a candidate for the outstanding small firm seat on the NAC is Oct. 3. Information, including eligibility requirements and the candidate profile form, is detailed in the Election Notice. 
     
  • Remote Inspections Pilot Program Deadline Reminder: Firms participating in the first year of the Remote Inspections Pilot Program must submit to FINRA their third-quarter data and written supervisory procedures (WSPs) for the inspections by Oct. 15. Read Regulatory Notice 24-02 for details. 
     
  • WebEFT Retirement: In response to feedback from firms, FINRA has extended WebEFT access until April 30, 2025, for firms that have started their transition from WebEFT to APIs by Nov. 15, 2024. The extension gives those firms additional opportunity to complete the required development to fully onboard to the API platform. WebEFT subscribers not migrating to APIs will no longer have access to WebEFT after Nov. 15, 2024, as previously announced.
Disciplinary Actions
FINRA publishes disciplinary actions to remind members of specific conduct that violates FINRA rules and may result in disciplinary action. The September 2024 Monthly Disciplinary Actions are available here.
Education and Compliance Programs     
2024 FINRA Advertising Regulation Conference | Sept. 26-27 | Washington, DC | Hybrid Event
 
2024 FINRA Small Firm Conference | Oct. 9-10 | Chicago | Hybrid Event  
 
Registration Systems Foundation Training | Oct. 15 | Washington, DC | In-Person Training
 
Disclosure Reporting Boot Camp l Oct. 16-17 l Washington, DC | In-Person Training
 
2024 FINRA Diversity Leadership Summit | Oct. 30-31 | Virtual Event
 
  • Week II: Capstone | Nov. 17-22 | In-Person Event | Sold Out
  • Week I: Foundation | July 13-18, 2025 | In-Person Event
 
2025 FINRA Annual Conference | May 13-15, 2025 | Washington, DC | 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.
 
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