FINRA Announces New Head of Enforcement

FINRA announced that it has appointed Bill St. Louis as Head of Enforcement. St. Louis was most recently head of FINRA’s National Cause and Financial Crimes Detection Program (NCFC) and will report directly to FINRA CEO Robert Cook.
 

All small and large firm members are encouraged to vote in the current Board of Governors election which concludes on September 6, 2023. Election Notice 8/7/2023 contains more information on the candidates and the election process.

Although the small and large firm elections are uncontested, FINRA must still meet its quorum requirement to finalize the elections.

A proxy solicitor was engaged by FINRA to contact firms to ensure that they received the proxy card, to encourage broad participation in the election and to help FINRA meet its quorum requirement. FINRA’s election agent is also sending email reminders to the executive representative of each firm with voting instructions (if you have your proxy, you can vote online here).

If you have questions or need a replacement proxy, please email the Office of Corporate Secretary or call (202) 728-8949.

Per Regulatory Notice 23-14, FINRA has amended the requirements relating to Covered Agency Transactions that FINRA originally adopted in 2016. The amendments become effective on May 22, 2024.

FINRA CAT, LLC recently published a roadmap to assist small firms with meeting their Customer and Account Information System (CAIS) reporting obligations by the compliance date of May 31, 2024. The roadmap lays out the steps necessary to prepare to submit full customer and account information to the CAT CAIS.

FINRA published Regulatory Notice 23-12, adopting amendments to its Codes of Arbitration Procedure to modify the process relating to requests to expunge customer dispute information in the FINRA Dispute Resolution Services (DRS) arbitration forum.

FINRA published Regulatory Notice 23-13 to adopt changes to its rules to allow for video conference hearings before the Office of Hearing Officers and the National Adjudicatory Council under specified conditions. These amendments will become effective August 23, 2023.
 

Web EFT Retires November 2024
This is a reminder to firms using the legacy Web EFT service that effective November 15, 2024, all associated XML file upload and download functionality will be completely retired. Current Web EFT subscribers wishing to continue making automated data transfers with FINRA must transition to using the new FINRA API platform. Key milestones and frequently asked questions are on the platform’s Web EFT Sunset page.

SEC Request for Comment
On August 2, 2023, the SEC issued an order instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change, as modified by Amendment No. 1, to adopt Supplementary Material .18 (Remote Inspections Pilot Program) under FINRA Rule 3110 (Supervision). Comments are due August 29, 2023. Any rebuttals to comments filed with the SEC are due September 12, 2023. See the SEC Notice of Order.
 

 Education and Compliance Programs

Registration is Open for the FINRA Diversity Leadership Summit
The FINRA Diversity Leadership Summit is back on October 31 – November2 in a virtual format—with sessions on the intersection of DEI and artificial intelligence; the latest research about investors from a range of backgrounds; insights from DEI practitioners and thought leaders, as well as heads of regulatory organizations; and more. Attendance is free, but pre-registration is required. Register today.

FINRA is offering five scholarships to industry professionals from small firms to attend the FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)^® program. The scholarship covers full tuition for the entire CRCP program, including room and board. The Small Firm Scholarship application period is now open through September 15, 2023. For more information, including eligibility requirements, the selection process and our online application, please visit our Small Firm Scholarship web page.

Registration is now open for the final 2023 session of the Virtual Registration Systems Foundation Training. Firm compliance personnel who are new to registration and licensing—or would like to become more familiar with navigating related systems—are invited to join FINRA virtually October 4 – 5. These training sessions run from noon to 5 p.m. ET on two consecutive days. See the Virtual Training Schedule & How to Register page for more information.

Meet FINRA staff and attend panels tailored to your firm’s business model at FINRA’s Firm Grouping Conference on October 9 – 10, in Kissimmee, FL. This in-person event designed to provide FINRA member firms the opportunity to engage in conversations and discuss risk and compliance on key topics tailored to each firm grouping (Retail, Capital Markets & Investment Banking, Clearing & Carrying, Diversified and Trading & Execution). This conference also offers networking opportunities to meet with other professionals across firm segments and FINRA senior leadership including a significant presence of Member Supervision officers and senior directors. View the agenda for more information.

Grab your seat! In-person registration and disclosure trainings return with back-to-back sessions this fall. Additional sessions have been scheduled for the ever-popular Registration Systems Foundation In-Person Training and Disclosure Reporting In-Person Boot Camp, both of which have back-to-back sessions scheduled this fall in New York, NY and Columbus, OH.

• Registration Systems Foundation Training is a one-day training for firm compliance personnel who want to become more familiar with navigating FINRA Gateway and submitting Uniform Forms.
   
• The Disclosure Reporting Boot Camp includes two days of comprehensive training on disclosure reporting topics, including determining reportability and responding to FINRA disclosure letters.

Space is limited, so register early.

Week II of the 2023 FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)^® Program has sold out! Register now to join the waitlist. This weeklong course, held November 12 – 17, focuses on advanced-level regulatory and compliance topics. Looking ahead? Registration is open for Week I in 2024.

Register for all of FINRA’s upcoming events:

• Virtual Registration Systems Foundation Training | Oct. 4 – 5, 2023 | Virtual
• FINRA Registration Systems Foundation In-Person Training
  • Sept. 19, 2023 | 8 a.m. – 5 p.m. ET | New York, NY
  • Oct. 17, 2023 | 8 – 5 p.m. ET | Columbus, OH
• FINRA Disclosure Reporting In-Person Boot Camp 
  • Sept. 20 – 21, 2023 | 8 – 5 p.m. ET | New York, NY
  • Oct. 18 – 19, 2023 | 8 – 5 p.m. ET | Columbus, OH
• Firm Grouping Conference | Oct. 9 – 10, 2023 | Kissimmee, FL | In-Person Only 
• Small Firm Conference | Oct. 25 – 26, 2023 | Santa Monica, CA | Hybrid Event 
• Diversity Leadership Summit | Oct. 31 – Nov. 2, 2023 | Virtual Event
• FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program | Washington, DC     
  • Week II | Nov. 12 – 17, 2023 – Waitlist Available
  • Week I | July 14 – 19, 2024     
• 2024 Annual Conference | May 14 – 16 | Washington, DC | Hybrid Event