Report from FINRA Board of Governors Meeting – September 2021

Board Approves New Maintaining Qualifications Fee;
Reaffirms FINRA’s Financial Guiding Principles

WASHINGTON – FINRA’s Board of Governors met on Sept. 23-24 and approved a proposal to establish a modest fee for individuals who choose to complete continuing education (CE) to remain qualified for up to five years following the termination of the individual’s registration.

On Sept. 21, the Securities and Exchange Commission (SEC) approved amendments to FINRA rules to enhance the CE program to, among other things, allow individuals who terminate their registrations to reregister after an extended period without retaking the required qualification examinations if they maintain their CE requirements during this period. The proposal the Board approved at the September meeting establishes the $100 annual fee for this new option, and requires SEC approval before going into effect.

“These enhancements to the continuing education program provide individuals with more flexibility to address life and career events and necessary absences from registered functions without having to retake qualification exams in order to return to the industry,” said FINRA CEO Robert Cook. “The changes support FINRA’s efforts to promote diversity and inclusion in the securities industry by attracting and retaining a broader and more diverse group of professionals.”

At the September meeting, the FINRA Board also reaffirmed the organization’s Financial Guiding Principles. FINRA first published the principles three years ago to provide more transparency about how FINRA manages its financial resources.

Rulemaking

The Board approved the following rulemaking items at the September meeting. For general information about FINRA’s rulemaking process, see www.finra.org/rules-guidance/rulemaking-process.

• Proposed Enhancements to FINRA’s TRACE Reporting Rules for Transactions in U.S. Treasury Securities – The Board approved filing with the SEC proposed amendments to the Trade Reporting and Compliance Engine (TRACE) Rules to enhance the audit trail for transactions in U.S. Treasury securities.
• Processing and Forwarding of Issuer-Related Materials – The Board approved filing with the SEC proposed amendments to FINRA Rule 2251 (Processing and Forwarding of Issuer-Related Materials) to conform with recent changes to related New York Stock Exchange (NYSE) rules.

The next FINRA Board of Governors meeting is scheduled for Dec. 1-2, 2021. More information regarding the Board's operations, including the membership and responsibilities of its committees, is available at www.finra.org/governance.

About FINRA

FINRA is a not-for-profit organization dedicated to investor protection and market integrity. It regulates one critical part of the securities industry—brokerage firms doing business with the public in the United States. 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.