Small Firms Information
FINRA has created this page to provide information for the small firm community—those firms with 150 or fewer registered financial professionals. This page contains current and past communications, links of interest to small firms, and other information.
The Small Firm Conference Call: Remote Inspection Pilot Program
Monday, February 12, 2024
4:30 p.m. ET
Registration is now open for our next Small Firm Conference Call, a free series hosted by senior FINRA leaders who discuss trending topics, new rules and regulatory guidance and best practices.
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski will be joined by FINRA senior staff to discuss Regulatory Notice 24-02 which highlights the new Residential Supervisory Location designation and the Remote Inspections Pilot Program.
This event is open to all members. Register Now | Submit a Question
The Small Firm Conference Call: Looking Ahead to 2024: A Conversation with FINRA Senior Leadership
Tuesday, December 12, 2023
4:30 p.m. ET
Registration is now open for our next Small Firm Conference Call, a free series hosted by senior FINRA leaders who discuss trending topics, new rules and regulatory guidance and best practices.
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski will be joined by FINRA senior leaders, Stephanie Dumont Executive Vice President, Market Regulation and Transparency Services, Bill St. Louis Executive Vice President, Enforcement, and Greg Ruppert Executive Vice President, Member Supervision, to discuss regulatory updates, initiatives, and areas of focus for 2024.
This event is open to all members. Register Now | Submit a Question
The Small Firm Conference Call: 2023 Report on FINRA’s Examination and Risk Monitoring Program – January 12, 2023 – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by Member Supervision’s Vice President Meredith Cordisco, Vice President Brian Kowalski and Vice President Joe Sheirer to discuss the 2023 Report on FINRA’s Examination and Risk Monitoring Program.
The Small Firm Conference Call: FINRA Updates: CE Transformation and CAT Implementation – December 5, 2022 – Audio Recording
Monday, December 5, 2022
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by Senior Director of Testing and Continuing Education Joe McDonald and Vice President of FINRA CAT Business Paul McKenney to provide an update on the CE transformation and CAT implementation.
The Small Firm Conference Call: SEC's Regulation Best Interest and Form CRS – September 19, 2022 – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by Associate General Counsel Meredith Cordisco, Senior Director of National Cause and Financial Crimes Detection Programs Nicole McCafferty, and Examination Director of Diversified, Carrying & Clearing Examinations Justin Triolo to discuss the SEC’s Regulation Best Interest (Reg BI) and Form CRS.
The Small Firm Conference Call: Senior and At-Risk Investors – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by FINRA senior staff to discuss senior and at-risk investors.
The Small Firm Conference Call: 2022 Report on FINRA’s Examination and Risk Monitoring Program – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by Member Supervision’s Executive Vice President Greg Ruppert, Vice President Demetrios “J” Koutros, and Vice President Joe Sheirer to discuss the 2022 Report on FINRA’s Examination and Risk Monitoring Program.
December 6, 2021
The Small Firm Conference Call: Cybersecurity – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by Member Supervision’s Dave Kelley, Keith Bettencourt and Wyatt Hamilton to discuss cybersecurity-related issues affecting the industry, along with effective practices we have observed at firms.
June 23, 2021
The Small Firm Conference Call: Cybersecurity – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by Vice President of Testing and Continuing Education (CE) David Scrams to discuss the CE Transformation including information on the Maintaining Qualifications Program and the transition to an annual Regulatory Element requirement. Senior staff will also discuss important year-end reminders.
March 5, 2021
The Small Firm Conference Call: 2021 Report on FINRA’s Examination and Risk Monitoring Program – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski are joined by FINRA senior staff to discuss the 2021 Report on FINRA’s Examination and Risk Monitoring Program.
December 1, 2020
The Small Firm Conference Call: FINRA Update and Technology Changes – Audio Recording
FINRA President and CEO Robert Cook and Vice President of Member Relations and Education Kayte Toczylowski were joined by FINRA staff to discuss FINRA updates and technology changes including CE Transformation, FINRA Gateway and CAT.
August 4, 2020
The Small Firm Conference Call: FINRA Update – Recent Rule Changes and Guidance Recording
FINRA President and CEO Robert Cook and Vice President and Deputy of Member Relations and Education Kayte Toczylowski were joined by FINRA senior staff to discuss recent updates, including the new FAQ about exemption reporting under SEA Rule 15c3-3, how to adjust supervisory systems to a remote work environment, and recent guidance on retail communications concerning private placement offerings. Register for access.
May 20, 2020
The Small Firm Conference Call: Updates and Implications of COVID-19 – Recordings
FINRA President and CEO Robert Cook and Senior Vice President of Member Relations and Education Chip Jones were joined by FINRA senior staff to discuss COVID-19 updates and implications for FINRA member firms.
February 11, 2020
CAT Small Firm Onboarding Checklist
Is your firm a broker-dealer that is a member of FINRA or a national securities exchange, and receives, originates and/or handles orders in “CAT Eligible Securities”, which includes NMS stocks and Listed Options, and/or OTC Equity Securities?
If the answer to this question is yes, then your firm has a Consolidated Audit Trail (CAT) reporting obligation and must register for and obtain access to CAT and prepare for reporting even if your firm plans to rely on a vendor or clearing firm to report equity and/or option transactions on its behalf. There are no exemptions to CAT reporting, unlike OATS. If your firm handles even ONE order in NMS stocks and Listed Options and/or OTC Securities all of the steps on the following checklist apply.
Broker-Dealers – Small Firm CAT Set-up and System Testing Completion Deadlines:
- Before April 20, 2020 – Small Industry Members1 currently reporting to OATS.
- Before December 2021 -- Small Industry Members not currently reporting to OATS.
If you are unsure if any of the steps apply to your firm, please direct your questions to the FINRA CAT Helpdesk at 888-696-3348 or [email protected]. For more detailed information, please refer to the FINRA CAT Industry Member Onboarding Guide.
January 28, 2020
2020 Annual Risk Monitoring and Examination Priorities Letter
Each year FINRA publishes it’s risk monitoring and examination priorities to highlight significant risks and issues that could adversely affect investors and market integrity in the coming year.
October 18, 2019
The Small Firm Conference Call: SEC’s Regulation Best Interest (Reg BI)
Tuesday, October 8, 2019
3 p.m. ET
The Small Firm Conference Call took place on October 8, 2019. FINRA President and CEO Robert Cook and Senior Vice President of Member Relations & Education Chip Jones was joined by Executive Vice President and Chief Legal Officer Bob Colby and Vice President and Associate General Counsel Jim Wrona to discuss the SEC’s Regulation Best Interest (Reg BI).
September 9, 2019
The Small Firm Conference Call: Consolidated Audit Trail (CAT) – Audio Recording
Monday, August 12, 2019
3 p.m. ET
The Small Firm Conference Call took place on August 12, 2019. FINRA President and CEO Robert Cook was joined by Senior Vice President of Member Relations and Education Chip Jones, Vice President Dave Chapman, as well as Senior Director, CAT Business Operations, FINRA CAT, LLC Paul McKenney, to discuss current progress and reporting obligations for the Consolidated Audit Trail (CAT).
May 8, 2019
Core Cybersecurity Controls for Small Firms
FINRA developed a Core Cybersecurity Controls for Small Firms - AC Flier list to help small firms in establishing an effective cybersecurity program.
March 6, 2019
Small Firm Report: FINRA’s 529 Plan Share Class Initiative – Audio Recording
Small firms represent a critical portion of FINRA’s membership and often face regulatory challenges that are unique from their large firm counterparts. In an effort to provide additional compliance education, FINRA launched The Small Firm Report, a series of free conference calls featuring senior FINRA leaders who discuss trending topics, new rules and regulatory guidance and best practices.
Our fourth Small Firm Report took place on Wednesday, February 20. FINRA President and Chief Executive Officer Robert Cook, was joined by Senior Vice President of Member Relations and Education Chip Jones and Executive Vice President of Enforcement Susan Schroeder to discuss FINRA’s 529 Plan Share Class Initiative.
A recording of the call is now available to FINRA member firms.
2018 Report on FINRA Examination Findings
FINRA published its second annual report detailing observations from recent exams of firms.
December 20, 2018
Report on Selected Cybersecurity Practices – 2018
Report on Selected Cybersecurity Practices – 2018 is a detailed review of effective information-security controls at securities firms. The report is designed to help broker-dealers – including small firms – further develop their cybersecurity programs. The report addresses areas that firms tend to find most challenging: cybersecurity controls in branch offices; methods of limiting phishing attacks; identifying and mitigating insider threats; elements of a strong penetration-testing program; and establishing and maintaining controls on mobile devices.
December 18, 2018
The Small Firm Report
Our third Small Firm Report took place on Tuesday, November 27. FINRA Chief Executive Officer Robert Cook, was joined by Senior Vice President of Member Relations and Education Chip Jones, Senior Vice President of Investor Education Gerri Walsh and Senior Director of Advertising Regulation Amy Sochard to discuss:
- New Research on Millennial Investors and Implication for Industry
- Digital Communications and Social Media Compliance
A recording of the call is now available to FINRA member firms. Register for access.
October 1, 2018
Materials from the SIE Exam and Exam Restructuring Calls
FINRA's Registration and Disclosure Department is holding a series of conference calls to discuss the Securities Industry Essentials (SIE) exam, the restructure of representative-level qualification exams, and the consolidation of registration rules that took effect October 1, 2018.
- Industry Call on Exam Restructuring - September 18, 2018
- Small Firm Call on Exam Restructuring - September 5, 2018
- Firm Calls on Exam Restructuring - August 15, 2018
- Industry-slides-exam-restructuring.pdf
August 20, 2018
Small Firm Report – Audio Recording
Small firms represent a critical portion of FINRA’s membership and often face regulatory challenges that are unique from their large firm counterparts. In an effort to provide additional compliance education, FINRA launched The Small Firm Report, a series of free conference calls featuring senior FINRA leaders who discuss trending topics, new rules and regulatory guidance and best practices.
View more details, including how to register.
May 1, 2018
Capital Acquisition Broker Written Supervisory Procedures Checklist
FINRA published a Written Supervisory Procedures checklist for capital acquisition brokers (CABs). It outlines selected key topics, ranging from administration to supervision and oversight.
April 25, 2018
FINRA 360 Progress Report
FINRA published a comprehensive progress report summarizing the significant operational and regulatory changes FINRA has made in the first year of its ongoing FINRA360 organizational review.
April 25, 2018
Investor Education: Protecting Seniors from Financial Exploitation
FINRA Investor Education published information to help investors better understand FINRA Rules Relating to Protecting Seniors from Financial Exploitation. Firms may use this to explain their ability to place a temporary hold on the disbursement of funds or securities and role of the trusted contact person.
May 23, 2016
Small Firm Cybersecurity Checklist
FINRA has created a Cybersecurity Checklist to assist small firms in establishing a cybersecurity program to identity and assess cybersecurity threats, protect assets from cyber intrusions, detect when their systems and assets have been compromised, plan for the response when a compromise occurs and implement a plan to recover lost, stolen or unavailable assets. This checklist is primarily derived from the National Institute of Standards and Technology (NIST) Cybersecurity Framework and FINRA's Report on Cybersecurity Practices. Use of this checklist does not create a "safe harbor" with respect to FINRA rules, federal or state securities laws, or other applicable federal or state regulatory requirements.
Other Announcements
Quarterly Disciplinary Review
View the latest issue of the Quarterly Disciplinary Review, a summary sampling of recent disciplinary actions involving misconduct by registered representatives that call attention to, and remind registered representatives and firms of, specific conduct that violates FINRA rules and may result in disciplinary action.
FINRA Rule Filing Status Report
The FINRA Rule Filing Status Report provides firms with a comprehensive list of FINRA rule filings currently pending with the SEC, as well as FINRA rule filings approved by the SEC, filed with the SEC for immediate effectiveness, or withdrawn within the last six months.