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FINRA’s Board of
Governors met on December 2-3, 2020, to review FINRA’s 2020 financial
performance, approve the organization’s 2021 proposed budget, reaffirm FINRA’s
Financial Guiding Principles, approve rule proposals, and receive several
operational updates.
The Board approved
two rule proposals to be filed with the Securities and Exchange Commission
(SEC), directing impacting our clients. As customary, the proposed rules will
be published for public comment within the year and must be approved by the SEC
before becoming effective.
One rule proposed
amendments to enhance FINRA’s Continuing Education (CE) Program. The proposed
rule would serve as amendments to FINRA Rules 1210 and 1240 and require
registered persons to complete the Regulatory Element of the CE program every
year (rather than every three years). The proposed rule would also allow
individuals who terminate their registrations to reregister for an extended period,
without retaking the required examinations, if they maintain their CE
requirements during this period.
Another proposed
rule serves as an amendment to the FINRA Rule 9000 Series and establishes a
process to appeal statutory disqualification determinations made by FINRA
staff. The new process will provide
individuals with the ability to challenge a FINRA decision that the person is
subject to a statutory disqualification, without needing the support of a firm
to do so.
We encourage our clients to review the December 2020 Board Update in detail. It serves as a useful resource in remaining up to date on future FINRA activities, initiatives, and rules. The next FINRA Board of Governors Meeting is currently scheduled for March 3-4, 2021.