The Financial Industry Regulatory Authority released Wednesday a FAQ on its 529 Plan Share Class Initiative and has extended the compliance dates associated with the initiative.
As noted by Susan Shroeder, FINRA’s enforcement chief, in a recent video message to firms, the broker-dealer self-regulator was contemplating whether or not it needed “to push the dates out because people have had a lot of questions about how to engage in the initiative.”
FINRA states in the 18-question FAQ that in order to allow firms sufficient time to consider the additional information provided in the FAQ and to provide firms more time to review their supervisory systems and procedures with respect to 529 plan sales, FINRA is extending the due dates set forth in Regulatory Notice 19-04.
Participating firms must provide FINRA Enforcement notice of their self-report by April 30, 2019, and then must confirm their eligibility by submitting the additional information specified in Regulatory Notice 19-04 by May 31, 2019.
The previous deadline required broker-dealers to self-report 529 plan share class violations by April 1, with May 3 being the deadline for a firm to submit requested information covering the disclosure period, January 2013 through June 2018.
FINRA launched the program on Jan. 28, explaining in Regulatory Notice 19-04 that over the past several years, some firms have failed to reasonably supervise brokers’ recommendations of multi-share class products.