The Financial Industry Regulatory Authority approved at its July board meeting rule proposals to expand the categories of persons allowed to act as custodians of the books and records of firms leaving the business, as well as the use of electronic signatures in authorizing the use of discretion in a customer’s account.
The planned use of electronic signatures is a long time coming.
Electronic signatures have “been around a long time, so this reflects just how behind the times FINRA is to the pulse of the industry when it relates to technology,” said Jon Henschen, president of broker-dealer recruiting firm Henschen & Associates.
The board met last week in Washington, and FINRA announced the board meeting results on Wednesday.
FINRA CEO Robert Cook said in a video update that the board also reviewed “some possible changes” to the broker-dealer self-regulator’s examination program structure.