The Financial Industry Regulatory Authority is undertaking a broad review of its rules, and is looking for feedback by May 12 on which ones it needs to modernize — including rules around remote work and branch offices.
FINRA said in a March 12 Reg Notice that it's also focused on "potential updates to its rules and regulatory approaches that might be appropriate in light of non-FINRA requirements applicable" to broker-dealers.
"Ultimately, this modernization is intended to further FINRA’s mission of investor protection and market integrity by supporting more efficient and effective regulatory requirements informed by both the contemporary market and technological environment, and opportunities for the future evolution in financial services," FINRA said.
FINRA also requests comment on other areas it should consider as part of the review.
FINRA has identified two initial areas of focus where it expects to issue targeted requests for comment in the near future:
- Capital Formation. These areas include: capital acquisition brokers (CABs) and other “limited purpose” broker-dealer models designed to support capital formation; research analysts and research reports; and other rules, guidance and processes affecting capital raising.
- Modern Workplace. These areas include requirements regarding: branch offices and remote work; registered representative credentialing and education; means of internal and customer communications (e.g. electronic delivery); and recordkeeping practices, particularly with respect to communications.
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