Information Notice – 12/9/19

Summary:

FINRA is publishing this Notice to assist firms with making accurate submissions in connection with requests for Federal Reserve Board Regulation T, SEA Rule 15c3-3 and FINRA Rule 4210 extensions of time around holidays when exchanges or banks are closed. The schedule included in this Notice specifies the due dates for filing requests of extensions of time prior to and after a holiday when the exchanges or banks are closed in 2020.  

Questions regarding this Notice may be directed to Theresa Reynolds, Senior Credit Regulation Coordinator, ROOR, at (646) 315-8567. 

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See below our updated Annual PCAOB Certified Audit Checklist.

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Regulatory Notice 19-35

Payment Deadline: December 16, 2019

Summary:

The 2020 Renewal Program begins on November 11, 2019, when FINRA makes the Preliminary Statements available to all firms in E-Bill. Preliminary Statements are not mailed to firms.

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Election Notice – 10/21/19

Ballot Due Date: November 20, 2019

Executive Summary

The purpose of this Election Notice is notify FINRA small firm members that ballots to elect one New York Region representative to the Small Firm Advisory Committee (SFAC) have been mailed to all eligible firms. FINRA small firm members¹ in the New York Region as of the close of business on Friday, October 18, 2019, are eligible to vote in these elections. All eligible firms are urged to vote in this election.

Ballots are due by Wednesday, November 20, 2019.

Attachment A lists the individuals certified by FINRA’s Corporate Secretary as satisfying the requirements to be a candidate for the New York Region SFAC election. Additional information about each candidate is available at www.finra.org/sfac/candidateprofiles.

Questions regarding this Election Notice may be directed to:

• Jennifer Piorko Mitchell, Vice President and Deputy Corporate Secretary, at (202) 728-8949 or via email; or
• Chip Jones, Senior Vice President, Member Relations and Education, at (240) 386-4797.
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Information Notice – 10/2/19

Summary:

Several member firms recently notified FINRA that they have experienced email account takeovers (ATOs) while using cloud-based email platforms, including Microsoft Office 365 (O365). Attackers used compromised email accounts to defraud member firms by requesting fraudulent wire requests or stealing confidential firm information or non-public personally identifiable information (PII). 

This Notice outlines the attackers’ tactics in executing ATOs, as well as steps taken by member firms to address ATO risks when using cloud-based email systems.

Questions concerning this Notice should be directed to:

• David Kelley, Surveillance Director, at (816) 802-4729.

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Regulatory Notice 19-31

Summary:

This Notice responds to questions that FINRA has received from members about how they can comply with FINRA rules when communicating with customers—particularly when using websites, email and other electronic media—while ensuring fair and balanced presentations. Our goal is to facilitate simplified and more effective disclosure in communications with the public.

FINRA welcomes the opportunity to consult with members about expanding their use of alternative and innovative design techniques—such as technology that offers customized information—in their marketing communications to help investors better understand their products and services. We are interested in ways that members can make communications more interesting and informative and how, together, we can improve the effectiveness of disclosure. Firms are encouraged to contact the Advertising Regulation Department directly at (240) 386-4500 to discuss these approaches.

Questions concerning this Notice should be directed to:

• Joseph E. Price, Senior Vice President, Corporate Financing/Advertising Regulation, at (240) 386-4623;
• Thomas A. Pappas, Vice President, Advertising Regulation, at (240) 386-4553; or
• Amy C. Sochard, Senior Director, Advertising Regulation, at (240) 386-4508.

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David A. Greene, the former head of the Financial Industry Regulatory Authority in Los Angeles, replaces Brian A. Stern, who will be leaving the company at the end of the year.

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Nomination Deadline: October 4, 2019

Summary:

The purpose of this Notice is to inform small FINRA member firms¹ of the upcoming Small Firm Advisory Committee (SFAC) election. One seat on the SFAC is up for election, representing the New York region.

The SFAC provides guidance to FINRA staff, particularly regarding the potential impact of proposed regulatory initiatives on FINRA’s small firm members. The SFAC meets four times a year, primarily in Washington, DC, prior to FINRA Board of Governors (FINRA Board) meetings. Potential candidates should ensure that their other commitments will allow for their participation in all SFAC meetings.

Any eligible candidate wishing to have his or her name included on the ballot must submit the relevant information via the candidate profile form to the Corporate Secretary of FINRA by Friday, October 4, 2019. The candidate profile form is available online. 

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WASHINGTON—FINRA announced today the election or appointment of four Governors to its Board of Governors:

• Chris W. Flint, President & Chief Executive Officer, ProEquities, Inc. and Senior Vice President, Distribution Companies for Protective Life Insurance Company, was elected by large firms as a Large Firm Governor, one of three representatives of large firms on the Board.
• FINRA small firms elected Linde Murphy, Chief Compliance Officer, M.E. Allison & Co., Inc., as one of three small firm representatives on the Board of Governors.

The two newly elected Governors join two new public Governors on FINRA’s Board. The two new public Governors, who were nominated by the Nominating Committee and approved by the full Board at its July Meeting in Washington, DC, are:

• Camille Busette, Director of the Race, Prosperity, and Inclusion Initiative and Senior Fellow in Governance Studies at the Brookings Institution; and
• Ethiopis Tafara, Vice President and General Counsel of Legal, Compliance Risk and Sustainability at the International Finance Corporation (part of the World Bank Group).
• Read more here!

Regulatory Notice 19-27

Summary:

FINRA is conducting a retrospective review to assess the effectiveness and efficiency of its rules and administrative processes that help protect senior investors from financial exploitation. The protection of senior investors is a top priority for FINRA. As such, FINRA is interested in whether additional tools, guidance or changes to FINRA rules or administrative processes are appropriate to further address suspected financial exploitation and other circumstances of financial vulnerability for senior investors.

This Notice outlines the general retrospective rule review process, summarizes the rules and administrative processes that most directly apply to financial exploitation of senior investors, and seeks responses to a number of questions related to addressing financial exploitation. Comment Period Expires: October 8, 2019

Questions regarding this Notice should be directed to:

• James S. Wrona, Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-8270;
• Jeanette Wingler, Associate General Counsel, OGC, at (202) 728-8013;
• Lori Walsh, Deputy Chief Economist, Office of the Chief Economist (OCE), at (202) 728-8323; or
• Dror Y. Kenett, Economist, OCE, at (202) 728-8208.

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