FINRA’s Board of Governors met via zoom on December 9, 2020. The Board approved three proposed rulemaking amendments and also approved FINRA’s 2021 proposed budget. 

One of the proposed amendments that was approved was to further enhance the Continuing Education Program (“CE”). The amendment applies to FINRA Rules 1210 and 1240, strengthening FINRA’s CE program. The change requires all registered persons to complete the Regulatory Element portion of the CE program every year instead of every three years. The amendment also allows individuals that terminate their registrations to re-register for an extended period without re-taking the required examinations, if they maintain their CE requirements during the period.

FINRA also approved the proposal of amendments to the SEC related to the application of FINRA Rules Regarding Security-Based Swaps to members’ activities and positions in security-based swaps. Amendments were proposed in light of the Securities and Exchange Commission’s (“SEC”) rules for security-based swap dealers, including business conduct, margin, and financial and operational requirements.

Finally, FINRA approved filing with the SEC proposed amendments to the FINRA Rule 9000 series. The amendment would establish a process to appeal statutory disqualification determinations made by FINRA staff. If approved, this process would allow individuals the ability to challenge a FINRA decision regarding statutory disqualification without the requirement of firm support to do so. 

To see the letter sent out to all member firms click here.

To watch the December 2020 Report Video click here.