The Financial Industry Regulatory Authority’s Board of Governors approved two rule proposals to update requirements for carrying agreements and to permit performance projections in certain written communications with investors, and also appointed new members to FINRA’s Advisory Committees. The meeting also covered long-term financial planning and updates on enterprise risk management and the cybersecurity program, and the Board approved FINRA’s 2024 Annual Financial Report. On carrying agreements, the Board authorized publication of a Regulatory Notice to solicit comment on proposed amendments to FINRA Rule 4311, including greater clarity for tri-party arrangements, clearer allocation of responsibilities under carrying agreements, treatment of omnibus carrying arrangements, and streamlined requirements for reports furnished by carrying firms to introducing firms. On communications with the public, the Board approved amendments to FINRA Rule 2210 intended to better align broker-dealer requirements with investment adviser requirements for performance projections by creating a narrowly tailored exception to the general prohibition on projections, subject to specified conditions such as policies and procedures, a reasonable basis for criteria and assumptions, and provision of specified information. The Rule 2210 amendments will be filed with the Securities and Exchange Commission for approval. FINRA’s 2024 Annual Financial Report is expected to be published later in June 2025, and the next Board meeting is scheduled for September 2025.

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