Financial Industry Regulatory Authority board approves five FINRA Forward rule modernization proposals

The Financial Industry Regulatory Authority’s Board of Governors approved five rule proposals aimed at modernizing and streamlining requirements for member firms under its FINRA Forward initiative. At its March 4-5 meeting, the Board also received an update on enhancements to FINRA’s enforcement program and approved the allocation of prior-year fine monies. The approved proposals would shorten waiting periods to retake FINRA qualification exams, shift delivery of regulatory requests for information and testimony to electronic delivery via FINRA Gateway, and remove the requirement for principal approval of late allocations of bulk investment adviser orders. They would also adjust reconciliation requirements for certain alternative investments to align with Securities and Exchange Commission no-action relief and expand on FINRA guidance, and update the Codes of Arbitration Procedure to give parties greater input into replacing arbitrators while codifying compensation for replacement arbitrators’ time spent reviewing recordings and transcripts. FINRA plans to publish details of fine-money allocations in an upcoming Report on the Use of 2025 Fine Monies, and noted that its new Quarterly Regulatory Policy Agenda summarises current rulemaking priorities and rule filings.