News Releases & Statements

WASHINGTON – FINRA announced today the election or appointment of five industry members to its 22-member Board of Governors. Seven of the 10 industry seats on FINRA’s Board are decided via election, and large, mid-size and small firms decide the Governors who represent their respective firm categories in those seats. At the Annual Meeting of FINRA Firms on Sept. 1, firms elected the following Governors to fill the three open elected seats:

FINRA Requests Comments on Report  WASHINGTON—A diversity of cloud computing models is transforming how broker-dealers operate, with the potential to enhance agility, efficiency, resiliency and security within firms’ operations, while also highlighting the importance for firms to consider relevant regulatory factors for maintaining investor protection and market integrity, according to a new research report from FINRA.

WASHINGTON – The FINRA Board of Governors has appointed Sam Deshpande as a new public Governor. Deshpande is Chief Information Officer for Humana, a U.S. health insurance company. His term on the FINRA Board begins immediately, and he will join the Board at its upcoming Board of Governors meeting on July 21-22.

Firm Ordered to Pay Approximately $70 Million for Systemic Supervisory Failures and Significant Harm Suffered by Millions of Customers WASHINGTON—FINRA announced today that it has fined Robinhood Financial LLC $57 million and ordered the firm to pay approximately $12.6 million in restitution, plus interest, to thousands of harmed customers. The sanctions represent the largest financial penalty ever ordered by FINRA and reflect the scope and seriousness of the violations.

FINRA and FINRA Foundation Issue Special Notice Soliciting Comment on Ways to Reach and Educate Novice Investors WASHINGTON—FINRA today announced it has launched a multi-year, multi-faceted $30 million initiative to explore innovative ways to reach and educate investors, especially new, self-directed retail investors who conduct transactions through online accounts or using mobile apps.

WASHINGTON—FINRA announced today that it has ordered Merrill Lynch, Pierce, Fenner & Smith, Inc. to pay more than $8.4 million in restitution to more than 3,000 customers who incurred potentially excessive sales charges in connection with early rollovers of Unit Investment Trusts (UITs). FINRA also fined the firm $3.25 million for failing to reasonably supervise early UIT rollovers.

Regulators Providing Free Training in Recognition of World Elder Abuse Awareness Day; Program Aims to Assist Firms in Implementing Requirements of Senior Safe Act WASHINGTON—In recognition of World Elder Abuse Awareness Day, the Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) today announced a new resource intended to assist securities firms in implementing the training requirements of the Senior Safe Act.

Following consultations with the SEC staff, we temporarily withdrew from SEC consideration our rule filing establishing specialized arbitration panels for expungement requests so that we can further consider whether modifications to the filing are appropriate.

Board Approves 2020 Annual Financial Report; Adopts Advisory Committee Term Limits in Support of Greater Diversity and Inclusion WASHINGTON – FINRA’s Board of Governors met on May 18-19, 2021. During the meeting, the Board approved FINRA’s 2020 Annual Financial Report, which—for the first time—will include a section on human capital describing the diversity of the self-regulatory organization’s workforce and Board of Governors. The report will be published this summer.

Statistical Overview of Brokerage Firms, Registered Representatives and Trading Activity WASHINGTON—FINRA today published the 2021 FINRA Industry Snapshot, its annual statistical report on the brokerage firms, registered representatives and market activity that FINRA regulates.