Board Approves Rule Proposal, Receives Update on Scheduling Tool for Examinations and Continues Discussion Around FINRA’s Long-Term Financial Planning

FINRA’s Board of Governors met on March 6-7 for the first time in 2024. The Board approved a rule proposal, received a briefing on examinations and investigations — including an update on the automation of a scheduling tool for exams as part of a multi-year initiative to enhance the exam program — and continued discussions around FINRA’s long-term financial planning.

As is customary for the first meeting of the year, the Board approved the allocation of prior-year fine monies to various capital initiatives in accordance with FINRA’s Financial Guiding Principles. FINRA will release details about the allocations in an upcoming Report on the Use of 2023 Fine Monies.

“The Board continues to embrace initiatives to enhance the exam program at FINRA,” said FINRA Board Chair Eric Noll. “The creation of efficiencies in the exam scheduling process is another indication of FINRA’s commitment to effectively oversee the activities of member firms.”

The FINRA Board often meets with Securities and Exchange Commission (SEC) officials and various stakeholders in conjunction with its meetings. During the March meeting, the Board met with Haoxiang Zhu, Director of the SEC’s Division of Trading and Markets, who discussed issues related to the securities industry and capital markets.

Rulemaking

The Board approved the following rule proposal at the March meeting. General information about FINRA’s rulemaking process is available here.

• Modifications to proposed amendments to the Codes of Arbitration Procedure previously approved by the Board to accelerate case processing for elderly or seriously ill parties — These modifications were in response to feedback FINRA received on a Request for Comment on the previous proposal, which would lower the age at which parties would qualify for accelerated processing. The proposal will require SEC approval before going into effect.

The next FINRA Board of Governors meeting is scheduled for May 8-9, 2024. More information regarding the Board's operations, including the membership and responsibilities of its committees, is available here.

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 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.

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