The Financial Industry Regulatory Authority Board of Governors approved four rule proposals for filing with the Securities and Exchange Commission as part of FINRA Forward, its rule modernization initiative. The proposals would make membership application reviews more risk focused, provide greater flexibility for annual CEO certification deadlines and remove two requirements viewed as outdated or duplicative. The proposals would rescind the Same Quote Rule, which requires firms to display the same price for an over-the-counter equity security across multiple platforms, and repeal a mutual fund prospectus disclosure requirement for cash compensation because it overlaps with Regulation Best Interest and other SEC disclosure rules. The board also received updates on FINRA’s artificial intelligence strategy, market surveillance, cybersecurity, regulatory operations reorganization and implementation of recommendations from an external review of the Enforcement Program.
US Financial Industry Regulatory Authority approves four rule modernization proposals for SEC filing
The Financial Industry Regulatory Authority approved four rule modernization proposals for SEC filing. The changes would make membership reviews more risk focused, increase CEO certification deadline flexibility and repeal outdated or overlapping quoting and mutual fund disclosure requirements.