Regulatory Notifications
Several rules require notification to FINRA and the U.S. Securities and Exchange Commission (SEC) based on certain financial and operational obligations. FINRA’s Regulatory Notifications application in FINRA Gateway provides a filing system for member firms to electronically submit this information to FINRA. For guidance related to submitting required notifications to the SEC firms should visit the SEC’s website or contact the SEC:
In 2024, FINRA implemented streamlined and intuitive data entry process for firms’ Financial Notifications and Regulatory Notifications, which includes a new amendment function to help firms make updates and changes to forms. Financial Notifications are located under the “Regulatory Notifications” header on the Browse Forms & Filings page in FINRA Gateway and include updated rule references. The Financial Notifications Filing Cabinet feature has been removed and previously submitted filings can be located under the Requests and Filings active tab.
CHANGES EFFECTIVE JANUARY 17, 2025
These four forms will be available to help firms easily share information with FINRA:
| Form Name | Rule Reference |
|---|---|
| Exemption from filing an initial annual audit report | SEA Rule 17a-5(m)(3)/01 |
| Expense-Sharing Agreement Notification | Notice to Members 03-63 (SEC Issues Guidance on the Recording of Expenses and Liabilities by Broker/Dealers) (October 2003) and the SEC’s Guidance Letter dated 7/11/2003. |
| Carry Specialist / Market Maker Account Undertaking | SEA Rule 15c3-1(a)(6)(iv) |
| 4120. Regulatory Notification and Business Curtailment | FINRA Rule 4120(a) (Regulatory Notification) |
The compliance date for using these forms is March 31, 2025.
List of Notifications
| Current Name | Name Effective April 27, 2024 | Rule Reference |
| Statement Regarding Independent Public Accountant | Revised & consolidated to: Statement & Replacement of Accountant | SEA Rule 17a-5(f)(2) & SEA Rule 17a-5(f)(3) |
| Replacement of Accountant | ||
| Failure to Make and Keep Current Books and/or Records – Initial Notification | Revised & consolidated to: Failure to Keep Books and Records | SEA Rule 17a-11(c) |
| Failure to Make and Keep Current Books and/or Records – Follow Up Report | ||
| Notice of Material Inadequacy or Material Weakness – Initial Notification | Revised & consolidated to: Material Weakness & Material Inadequacy | SEA Rule 17a-11(d)(1), SEA Rule 17a-11(d)(2) & SEA Rule 17a-5(h) |
| Material Inadequacy or Material Weakness – Follow Up Report | ||
| Withdrawals of Equity Capital | Withdrawals of Equity Capital | SEA Rule 15c3-1(e)(1)(i) or SEA Rule 15c3-1(e)(1)(ii) |
| Failure to make a deposit in the special reserve bank account or special account (SEA Rule 15c3-3(i)) | Special Reserve Account (Hindsight Deficiency) | SEA Rule 15c3-3(i) & SEA Rule 15c3-3(i) & SEA Rule 15c3-3(i) & SEA Rule 15c3-3(i)/01 |
| Undertaking Regarding Electronic Recordkeeping System | Electronic Recordkeeping Systems | SEA Rule 17a-4(f)(3)(v)(A) |
| Net Capital below minimum amount required (SEA Rule 17a-11(b)) | Net Capital Deficiency | SEA Rule 15c3-1(a) & SEA Rule 17a-11(a)(1) |
| Aggregate Indebtedness > 1200% of Net Capital | Aggregate Indebtedness in Excess of 1,200% of Net Capital | SEA Rule 17a-11(b)(1) |
| Net Capital < 5% Aggregate Debit Items | Net Capital less than 5% of Aggregate Debit Items | SEA Rule 17a-11(b)(2) |
| Net Capital < 120% Minimum Net Capital | Net Capital less than 120% of Required Minimum Net Capital (Early Warning) | SEA Rule 17a-11(b)(3) |
| Failure to make a deposit in the Special Reserve Account for the Exclusive Benefit of Security-Based Swap customers | Special Reserve Account (Hindsight Deficiency) | SEA Rule 17a-11(f) |
| Effective April 27, 2024: Covered Agency TNC Threshold > $25 Million* | Covered Agency TNC Threshold > $25 Million | FINRA Rule 4210(e)(2)(H) (Regulatory Notification and Business Curtailment) |
| Effective April 27, 2024: TNC Threshold >5% or >25%* | TNC Threshold >5% or >25% | FINRA Rule 4210(e)(2)(I) (Regulatory Notification and Business Curtailment) |
| NEW Effective January 17, 2025: Exemption from filing an initial annual audit report | Exemption from filing an initial annual audit report | SEA Rule 17a-5(m)(3)/01 |
| NEW Effective January 17, 2025: Expense-Sharing Agreement Notification** | Expense-Sharing Agreement Notification | Notice to Members 03-63 (SEC Issues Guidance on the Recording of Expenses and Liabilities by Broker/Dealers) (October 2003) and the SEC’s Guidance Letter dated 7/11/2003. |
| NEW Effective January 17, 2025: Carry Specialist / Market Maker Account Undertaking | Carry Specialist / Market Maker Account Undertaking | SEA Rule 15c3-1(a)(6)(iv) |
| NEW Effective January 17, 2025: 4120. Regulatory Notification | 4120. Regulatory Notification | FINRA Rule 4120(a) (Regulatory Notification) |
If you have problems using the Regulatory Notifications application, please contact the FINRA Support Center at (800) 321-6273. FINRA also encourages firms to contact their assigned Risk Monitoring Analyst for additional guidance.
* FINRA added two new forms for Covered Agency Transactions pursuant to Regulatory Notice 23-14 (Amendments to Covered Agency Transaction Requirements under FINRA Rule 4210).
**Pursuant to item no. 9 of the Notice to Members 03-63 (SEC Issues Guidance on the Recording of Expenses and Liabilities by Broker/Dealers) (October 2003), a broker-dealer must notify its DEA if it enters into, or has entered into, an expense sharing agreement and the broker-dealer does not record each of the expenses it incurs relating to its business on the reports it is required to file with the Commission or with its DEA under the financial responsibility rules. The notification must include the date of the agreement and the names of the parties to the agreement. The broker-dealer must provide a copy of the agreement to its DEA upon request. This notification is applicable to both existing and new expense-sharing agreements.