The Financial Industry Regulatory Authority’s Board of Governors approved FINRA’s 2026 budget and three related rule proposals intended to modernize requirements for member firms while strengthening customer protections. The Board also reviewed FINRA’s 2025 financial performance. The electronic delivery proposal would allow firms to use electronic delivery as the default method for providing information to customers under FINRA rules, while preserving customers’ ability to choose paper delivery. A separate customer protection proposal would enhance the use of trusted contacts and give firms greater flexibility to extend temporary holds where there is a reasonable suspicion of financial exploitation of a senior or vulnerable adult, and it would add an optional shorter temporary hold “speed bump” to address suspected fraud involving customers of any age. The collective trust fund proposal would provide more flexibility for collective trust funds to receive initial public offering allocations under FINRA’s new issue rules by treating these vehicles similarly to other pooled investments used in qualified retirement plans. FINRA plans to file the electronic delivery and collective trust fund proposals with the US Securities and Exchange Commission, with electronic delivery accompanied by related guidance in a Regulatory Notice. It will also issue a Regulatory Notice seeking comment on the financial exploitation proposal. The Board received updates on FINRA’s 2026 Regulatory Oversight Report, an external review of its enforcement program, and work to operationalize two new groups, Regulatory Operations and Market and Regulatory Services.
Financial Industry Regulatory Authority 2025-12-22
Financial Industry Regulatory Authority board approves 2026 budget and backs rule changes on electronic delivery, financial exploitation safeguards and collective trust fund IPO access
The FINRA Board approved the 2026 budget and three rule proposals to modernize member firm requirements and enhance customer protections. Key proposals include default electronic information delivery, enhanced use of trusted contacts, and increased flexibility for temporary holds to prevent financial exploitation. FINRA will file these proposals with the US Securities and Exchange Commission and seek comments on the financial exploitation proposal.