U.S. Financial Industry Regulatory Authority approves four FINRA Forward rule modernization proposals

The U.S. Financial Industry Regulatory Authority’s Board of Governors approved four rule proposals tied to its FINRA Forward rule modernization initiative, aimed at reducing unnecessary regulatory burdens while preserving investor protections. The proposals, which will be filed with the Securities and Exchange Commission, cover remote inspections, supervision and non-branch location requirements, continuing education and corporate financing rules. The Board also approved FINRA’s 2025 Annual Financial Report. The remote inspections proposal would make permanent the Remote Inspections Pilot Program before it expires. The supervision proposal would extend the presumptive inspection cycle for non-branch locations, simplify treatment of different residence types and modify supervisory ineligibility requirements for Residential Supervisory Locations. The continuing education proposal would address workload for individuals with multiple registrations, support more efficient firm training programs, add timing flexibility and create a voluntary pilot for senior leader delivery. The corporate financing proposal would modernize underwriting compensation treatment, simplify compliance for members with conflicts of interest in public offerings and expand the filing exemption for certain private placements. FINRA said the 2025 Annual Financial Report and a report on the external review of its enforcement program will be published later this month. The Board also discussed possible changes to FINRA’s arbitration forum, potential amendments to research rules and received an update on the Consolidated Audit Trail, including the SEC’s concept release on a comprehensive review of CAT.