• FINRA Issues

    Here are issues FSI has recently been involved in at FINRA:

  • FINRA Withdraws BrokerCheck Rule
    April 24, 2013

    FSI has learned that FINRA has withdrawn its proposed rule with the SEC that would have required financial advisors using social media to post a link to BrokerCheck on social media sites.

    Statement on FINRA Recruitment Compensation Disclosure Proposal
    January 8, 2013 

    The Financial Services Institute (FSI) has issued the following statement on FINRA's recruitment compensation disclosure proposal...

     

    Newly Released Regulatory Notice 12-55 Provides Additional Clarity on Suitability Obligations
    December 17, 2012 

    On December 10, 2012, FINRA issued Regulatory Notice 12-55, which provides updated guidance on FINRA’s recently revised Suitability Rule, FINRA Rule 2111. The Notice addresses issues discussed in a previous FINRA notice, Regulatory Notice 12-25, that remained ambiguous, notably, the scope of the terms “customer” and “investment strategy”. The notice further describes the suitability obligations for hold recommendations, non-security investments, and broker-dealers’ supervisory responsibilities. FSI has been urging FINRA to provide additional clarity on these areas since the rule was originally proposed, and applaud FINRA for releasing further guidance.

    FINRA BrokerCheck Decision Increases Transparency, Provides Fairness to Advisors

    September 24, 2012

    The Financial Services Institute (FSI) today announced another advocacy victory following the most recent FINRA Board of Governors Meeting when amendments to the BrokerCheck Disclosures did not include making financial advisors’ test scores for tests taken on a pass/fail basis public on the system.

    Comment Letter on Expungement Procedures

    May 21, 2012

     

    On May 21, FSI submitted a comment letter supporting FINRA's proposed rules for expungement procedures.

    FINRA Provides Important Changes to Rule Regarding Communications with the Public(2)

    FINRA Provides Important Changes to Rule Regarding Communications with the Public Extended Implementation Period Will Allow a Smooth Transition to New Requirements We are pleased to report that FINRA has responded to our concerns regarding a proposedrule that would make...

    FINRA Provides Important Changes to Rule Regarding Communications with the Public
    January 10, 2012

    We are pleased to report that FINRA has responded to concerns we raised regarding a proposed rule that would make significant changes with respect to communications with the public.

     

     

    Establishing Ties with FINRA to Better Inform Regulatory Process
    In response to our recent invitation urging FSI members to submit applications for FINRA District Committee elections, we are very pleased to inform you that FSI members responded to our call, and with impressive results.
    FSI Urges Members to Submit Applications for FINRA District Committee Elections
    September 27, 2011

    FINRA recently announced its nomination and election procedures to fill vacancies on FINRA District Committees.

     

    Influencing the FINRA Rule Book Consolidation an FSI Priority
    September 27, 2011

    On August 24, 2011, FSI submitted a comment letter to the SEC in response to FINRA’s proposed changes to its rules regarding communications with the public.

     

    Call to Action – Submit Your FINRA District Committee Candidate Profile Form
    September 27, 2011

    FSI’s goal is to create a healthier, business-friendly regulatory environment for you to thrive in. In that vein, constructive engagement with FINRA and active participation by FSI members on FINRA District Committees helps ensure that independent broker-dealer model flourishes into the future.

     

    FSI Voices Concerns Over FINRA’s Revised Supervision Rules
    July 22, 2011

    On June 10, The Financial Industry Regulatory Authority (FINRA) filed with the Securities and Exchange Commission (SEC) for approval proposed changes to existing supervision rules. The proposal seeks to consolidate NASD and NYSE supervision rules, classify previously issued guidance and adopt core changes to the supervision rules.

    FSI Endorses Candidate for FINRA Small Firm Seat
    FSI publically endorsed John Moloney, Chairman and CEO of Moloney Securities Co. and an FSI member, to be elected to the FINRA Board of Governors.
    FSI Comments on FINRA’s Revenue Sharing Disclosure Rule
    May 31, 2011

    On May 31, FSI submitted a comment letter to the Securities Exchange Commission (SEC) on FINRA’s proposed changes to adopt NASD Rule 2830 as FINRA Rule 2341 (Proposed Rule).

    FSI Comments on FINRA’s Outsourcing Rule Proposal
    May 24, 2011

    On May 13, FSI submitted a comment letter to FINRA in response to Regulatory Notice 11-14, which codifies existing FINRA guidance related to third-party service providers.

    FSI Comments on Regulatory Notice 11-08
    April 1, 2011

    On March 28, 2011, FSI submitted a comment letter to FINRA related to Regulatory Notice 11-08 (RN 11-08).

    FSI Submits Comment Letter to FINRA on Private Placement of Securities

     On Tuesday, March 15, 2011, FSI submitted a comment letter to the Financial Industry Regulatory Authority (FINRA) on a proposal to amend FINRA Rule 5122 related to the private placement of securities.

    FSI Submits Comment Letter to FINRA on Disclosure Statements for Retail Investors
    December 30, 2010
    In response to FINRA Regulatory Notice 10-54, FSI submitted a comment letter to FINRA December 27, 2010.
    FSI Provides Comment on FINRA Know Your Customer & Suitability Rule Proposal
    December 27, 2010
    FSI submitted a comment letter December 14, 2010, regarding the SEC’s approval of Amendment No. 1 to FINRA Rules 2090 (Know Your Customer) and 2111 (Suitability) (Proposed Rules).
    FINRA Contemplates New Disclosure Requirements
    December 9, 2010
    FSI issued a Call to Action December 9 urging financial advisor members to comment on FINRA’s concept proposal for a pre-engagement disclosure document for retail investors (Regulatory Notice 10-54).
    FSI issued a Call to Action December 9 urging financial advisor members to comment on FINRA’s concept proposal for a pre-engagement disclosure document for retail investors (Regulatory Notice 10-54).
    FSI Comments on FINRA Rule 4530
    December 6, 2010
    On Monday, December 6, FSI submitted a comment letter to the SEC on the recently filed amendments to FINRA Rule 4530 in the Consolidated FINRA Rulebook and the SEC’s Order granting accelerated approval of the same.
    On Monday, December 6, FSI submitted a comment letter to the SEC on the recently filed amendments to FINRA Rule 4530 in the Consolidated FINRA Rulebook and the SEC’s Order granting accelerated approval of the same.
    FSI Comments on FINRA’s Proposed Rule Change to the Suitability and Know Your Customer Rules
    September 30, 2009

    FSI submitted a comment letter to SEC in response to FINRA’s proposed adoption of new suitability and “Know Your Customer” (KYC) Rules.  We previously submitted a comment letter in response to Regulatory Notice 09-25...

    FSI Comments on FINRA’s Revised OBA Rule Proposal
    September 24, 2010

    FSI submitted a comment letter to SEC in response to FINRA’s amended Outside Business Activities (OBA) rule proposal.  The Proposed Amendment would require that, upon receipt of a OBA notice from a registered representative, a firm shall consider...

    FSI Comments on FINRA’s Proposed Rule Relating to Reporting Requirements
    September 17, 2010

    On September 15, 2010, FSI submitted a comment letter in response to FINRA's proposal to adopt FINRA Rule 4530 in the Consolidated FINRA Rulebook.

    FSI Comments on Regulatory Notice 10-25
    August 5, 2010

    On May 26, 2010, FINRA Published Regulatory Notice 10-25 seeking comments on its proposal to expand FINRA’s registration requirements to include individuals who are engaged in, or supervising, activities relating to sales and trading support, and that handle customer assets. On June 30, 2010, FSI submitted a comment letter in response to this Regulatory Notice.

    FSI to Comment on Regulatory Notice 10-25
    In July of 2010, FINRA released a rule proposal to expand its registration requirements to include individuals who are engaged in, or supervise activities relating to sales and trading support, and who handle customer assets. The Proposed Rule could have important implications for independent broker-dealers, and the individuals who work in the broker-dealers' back offices by requiring each "covered person" to register as an Operations Professional, take an examination, and meet continuing education requirements.
    FSI Endorses Two Members for FINRA Board of Governors Seats
    FSI is pleased to endorse Mari Buechner, 2010 chair of the FSI Board of Directors, for a two-year small firm seat on the FINRA Board of Governors.
    FINRA's Proposed Rule Governing Registration, Qualification Examination, and Continuing Education Requirements
    On June 30, 2010, FINRA released a rule proposal to expand its registration requirements to include individuals who are engaged in, or supervising, activities relating to sales and trading support, and that handle customer assets.
    FSI Comments on FINRA’s BrokerCheck Rule Proposal
    May 19, 2010

    On May 19, 2010, FSI filed a comment letter with the SEC on FINRA’s proposed amendments to FINRA Rule 8312 concerning FINRA’s BrokerCheck Disclosures.

    Three FSI Members Nominated for FINRA Board of Governors
    May 18, 2010

    The annual meeting of FINRA firms will take place on or about Monday, August 2, 2010, to elect individuals to fill the seven Elected Governor seats on the FINRA Board of Governors. There are three Small Firm Governor seats, one Mid-Size Firm Governor seat, and three Large Firm Governor seats up for election.

    FSI’s Support of FINRA’s Bank Broker-Dealer Rule is Successful
    April 20, 2010

    On September 8, 2009, FSI submitted a comment letter supporting FINRA’s proposal to streamline the requirements of the bank broker-dealer rule. The proposal was designed to ensure uniformity between FINRA requirements and the relevant provisions of the Gramm-Leach Bliley Act of 1999 (GLB) and Regulation R.

    FSI Comments on FINRA’s Rule Proposal Regarding Membership Application Processes
    March 5, 2010

    The Proposed Rules are intended to streamline the standards of review for new and continuing membership applications (CMA), clarify certain administrative aspects of the Membership Application Process (MAP), update or eliminate outdated terminology, require certain additional information about the applicant, and incorporate certain provisions from the Incorporated NYSE membership rules.

    FSI Comments on FINRA’s Rule Proposal Regarding Registration and Qualification Requirements
    February 26, 2010 

    FSI submitted a comment letter in response that generally supported the rule proposal, but suggested several improvements to address the complexity of the Retained Associate’s ten-year clock, the circumstances under which an individual may act as a principal before passing the required registration exams, the Chief Compliance Officer examination requirement, and other issues of concern to our members.

    FSI Comments on FINRA’s Discretionary Accounts and Transactions Proposal
    December 28, 2009 

    On November 12, 2009, FINRA published Regulatory Notice 09-63 seeking comments on its proposal to amend its rules governing discretionary accounts and transactions. On December 28, 2009, FSI submitted a comment letter in response to Regulatory Notice 09-63 which generally supported the Proposed Rule. 

    FSI Supports FINRA’s Proposal to Streamline Advertising Rules
    November 20, 2009

    On September 21, 2009, FINRA published Regulatory Notice 09-55 seeking comments on its proposal to rework its rules governing communications with the public (Proposed Rule). The Proposed Rule seeks to streamline the existing advertising rules by reducing the number of communications categories from six to three. 

    FSI Comments on FINRA’s Investment Company Securities Proposal
    August 7, 2009

    On June 17, 2009, FINRA published Regulatory Notice 09-34 seeking comment on its proposal to incorporate and replace NASD Rule 2830 regarding the distribution and sale of investment company securities with new FINRA Rule 2341. The proposed rule would require firms to make new disclosures to investors regarding the receipt of cash compensation in connection with the sale of investment company securities.

    FSI Concerned with New FINRA Advertising Campaign
    July 30, 2009

    The Financial Services Institute and the Financial Services Roundtable have sent a joint letter to FINRA expressing concerns with certain aspects of recent FINRA television and radio ads. The main focus of FINRA’s new ads appears to be to inform investors of FINRA’s existence and role in protecting investors.

    FINRA Responds to Industry Comments on Circulation of Rumors Proposal
    July 16, 2009 

    As part of FINRA’s ongoing rulebook consolidation process, FINRA proposed a new rule last year to prevent the dissemination of rumors intended to manipulate stock prices. The proposal combines aspects of FINRA Rule 6140 and Incorporated NYSE Rule 435(5) and extends the prohibitions on the origination and circulation of rumors to cover all securities.

    FINRA Proposal to Expand Advisors’ Suitability Obligations
    June 16, 2009

    FINRA has released a new rule proposal that consolidates the existing rules governing suitability and the know-your-customer obligations into a new FINRA Rule 2111 (Proposed Rule).

    FSI Responds to FINRA Proposal on Personal Securities Transactions
    June 5, 2009 

    On April 21, FINRA published a proposal that would require financial advisors to obtain written consent to open an account at another firm and require their broker-dealer to receive both confirmations and statements from the executing broker-dealer.

    SEC Approves FINRA Proposal to Amend Forms U4 and U5
    May 13, 2009

    On May 5, FINRA filed with the SEC a letter responding to the comments provided by FSI, over 1,000 of our members, and other industry participants. Shortly thereafter, FINRA filed two amendments to their proposal. On May 13, the SEC approved FINRA's final proposal to amend Forms U4 and U5. FINRA’s final rule proposal responded by making many of the changes suggested by FSI.

    SEC Approves Variable Annuity Rule (FINRA Rule 2821)
    April 15, 2009

    A FINRA proposal that amends the principal review requirements of FINRA Rule 2821, commonly known as the Variable Annuity rule, has been approved by the SEC. The approved amendments benefit financial advisors and broker-dealer firms by modifying the starting point for the seven-business-day principal review period from the date the client signed the application to the date the firm's OSJ receives the application.

    FSI Members Elected to FINRA District Committees 2009
    March 24, 2009 

    FSI is pleased to announce that all 28 FSI members that were selected as nominees by FINRA District Nominating Committees were elected in their districts. With the addition of the newly elected nominees, FSI members now make up more than one-quarter of all FINRA District Committees

    FSI Comments on FINRA’s Proposed Rule on Best Execution
    February 27, 2009

    FINRA recently requested comment on a proposal  relating to FINRA’s rule on best execution and interpositioning. The proposed rule simplifies and clarifies the requirements in several specific instances.

    FSI Comments on FINRA’s Proposed Rule on Information and Data Reporting
    February 20, 2009

    On January 6, 2009, FINRA requested comment on a proposal relating to information and data reporting and filing requirements. The proposed rule is intended to establish a new information reporting requirement; require broker-dealer firms to report additional applicable contact information; and consolidate, streamline, and modify into one rule several separate reporting and filing requirements. 

    FINRA Members Elect FSI Board Member to Small Firm Seat on Board of Governors
    December 2008

    Mari J. Buechner, President & CEO of Coordinated Capital Securities in Madison, Wisconsin, has been elected by FINRA’s small firm members to the vacant Small Firm seat on the FINRA Board of Governors.  FSI strongly endorsed Mari’s nomination for the open seat and concurs with the judgment of her industry peers that she will be a strong and credible advocate for small firms.

    FSI Applauds SEC Approval of Market Letters Amendment
    November 2008

    The SEC approved FINRA’s proposed amendment to NASD Rules 2210 and 2211 which allows financial advisors and firms to distribute market letters to retail customers without prior approval by a registered principal.

    FSI Member Elected to FINRA Small Firm Advisory Board
    2008

    We are pleased to announce that Carolyn May, Chief Compliance Officer of Simmons First Investment Group, Inc., has been elected to FINRA's Small Firm Advisory Board (SFAB). Carolyn will serve along side nine other board members, representing the South Region.

    FSI Comments on FINRA's Proposals on Rulebook Consolidation
    May 2008

    FINRA has released four rule proposals for consolidating NASD and NYSE rules for the new FINRA rulebook. The four areas covered by the proposals are Financial Responsibility, Supervision and Supervisory Controls, Books and Records, and Investor Education and Protection.  The proposals are preliminary and still must be filed with and adopted by the SEC before they can take effect.

    FSI Members Elected to FINRA District Committees
    April 2008

    FSI is pleased to announce that all 36 FSI members that were selected as nominees by FINRA District Nominating Committees were elected in their districts.  Last February, FSI members responded in record numbers to our call to action by submitting over 90 nominees for service on one of the 11 FINRA District Committees.

    FSI Board Member Appointed to FINRA Small Firm Advisory Board
    April 2008

    We are pleased to announce that Mari Buechner, President, CEO, & COO of Coordinated Capital Securities, has been appointed to FINRA's Small Firm Advisory Board (SFAB).  Mari has been affiliated with Coordinated Capital since 1987 and has experience in all aspects of the industry, including operations, administration and compliance. 

    MSRB Responds to FSI Concerns about Rule G-27
    May 2007

    On May 22, 2007, the SEC approved amendments to MSRB Rule G-27.  These amendments were designed to incorporate many of the requirements of NASD Conduct Rules 3010 and 3012 in order to promote regulatory consistency and specifically apply these rules to the municipal securities activities of broker-dealers. 

    NASD Backs Off Changes to Branch Definitions based on FSI Input
    February 2007

    In NtM 07-12, the NASD proposed an amendment to Conduct Rule 3010(g) which would have eliminated the definition of an Office of Supervisory Jurisdiction (OSJ). The term would have been replaced by definitions for a "supervisory branch office," a "limited supervisory branch office," a "non-supervisory branch office" and "non-branch office."

    FSI Endorses NASD/NYSE Regulation Merger Proposal
    December 13, 2006

    ATLANTA, GA . . . December 13, 2006 . . . The Financial Services Institute announced today that it is endorsing the proposed merger of the regulatory functions of NASD and NYSE Regulation into a single, unified self-regulatory organization for the securities industry.

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    Who to Contact

    David Bellaire, Esq.
    Executive Vice President & General Counsel
    202 803-6061
    Email David