The Financial Industry Regulatory Authority plans to issue a Regulatory Notice seeking comment on a “new expedited proceeding” rule for reps and nonreps who cheat on exams, and is planning an overhaul of its enforcement technology platform.
The reg notice will also seek comment on FINRA Qualification Examinations Rules of Conduct as well as corresponding amendments to the registration requirements rule, Rule 1210.
The broker-dealer self-regulator is also considering amendments to the eligibility proceedings rules for requests by sponsoring firms to associate, or continue associating, with persons who have been prohibited from taking FINRA qualification exams.
FINRA’s board, which met virtually on June 10 and 11, also approved a plan to enhance FINRA Enforcement’s technology platform.
The Enforcement Digital Transformation, which will take three years to finalize, is designed to improve efficiencies in the case workflow process, reduce maintenance costs and deliver additional annual savings.
“The new Enforcement technology platform will replace one that is 13 years old and currently presents workflow challenges, which can slow down the process of bringing enforcement actions,” said FINRA CEO Robert Cook, in a statement. “The Enforcement Digital Transformation will lead to greater operational effectiveness within the Enforcement department and for other regulatory groups at FINRA, and — as an added benefit — reduced operating costs.”
FINRA’s board also signed off on amendments to FINRA Rules 5122, Private Placements of Securities Issued by Members, and 5123, Private Placements of Securities, to require firms to file retail communications concerning specified private placements. FINRA will file the amendments with the Securities and Exchange Commission for approval.
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