FINRA Board Approves Rule Proposal and Receives Briefing on Examinations and Investigations

The Financial Industry Regulatory Authority (FINRA) held its first Board of Governors meeting for the year on March 6-7, 2024. The Board approved a new rule proposal and received updates on various initiatives and discussions.The Board approved a rule proposal which will accelerate case processing for elderly or seriously ill parties in arbitration cases. This proposal is a modification to previous amendments that were already approved by the Board.

The Board also discussed ongoing initiatives such as automation of a scheduling tool for exams, which is part of a multi-year effort to improve the exam program. They also received a briefing on examinations and investigations, including an update on the progress of automating the scheduling tool.

Long-term financial planning was also a topic of discussion during the meeting. FINRA’s Financial Guiding Principles were referenced during these discussions, emphasizing the importance of maintaining financial stability while fulfilling their mission to protect investors and promote market integrity.In addition to the internal discussions, the Board met with Haoxiang Zhu, Director of the Securities and Exchange Commission’s Division of Trading and Markets, to discuss issues related to the securities industry and capital markets.

The SEC previously requested comments from stakeholders regarding the proposed amendments to the Codes of Arbitration Procedure. During the meeting, the Board confirmed that the request for comments had been processed.Overall, the Board’s meeting covered a variety of topics important to FINRA’s mission and long-term goals. By approving new proposals and discussing ongoing initiatives, the Board continues to work towards protecting investors and promoting integrity in the securities industry.