Board Reaffirms FINRA’s Financial Guiding Principles;
Receives Updates on Regulatory Operations
FINRA’s Board of Governors met on September 13-14 in Philadelphia. In addition to continuing discussions around FINRA’s Regulatory Operations, the Board reaffirmed FINRA’s Financial Guiding Principles.
“Transparency around FINRA’s finances benefits everyone in our industry,” said FINRA Board Chair Eric Noll. “Through reaffirming the Financial Guiding Principles, the Board continues to provide clarity and direction on how FINRA can best fulfill its regulatory mandate.”
“The Financial Guiding Principles set forth the key considerations that guide FINRA’s longer-term financial planning, our commitment to financial transparency and the responsible management of our expenses,” said FINRA CEO Robert Cook.
FINRA’s Financial Guiding Principles were first published in 2018. They are an integral part of the heightened transparency regarding FINRA’s finances, which also includes annual publications of FINRA’s audited Annual Financial Report. Annual Budget Summary and Report on the Use of Fine Monies.
The Board received several updates related to Regulatory Operations and FINRA’s engagement with member firms. The Board met with Bill St. Louis, who was recently appointed as Head of Enforcement, and received updates on FINRA’s ongoing crypto asset-related regulatory work, the work of the Office of Regulatory Economics and Market Analysis (REMA), surveillance-driven compliance support tools—including Report Cards—that assist firms in detecting potential compliance problems early on, as well as FINRA’s increased proactive member firm engagement, education and intelligence-sharing with regard to cybersecurity. In addition, the Board received an overview of pending and final regulatory initiatives affecting member firms.
The Board also received an update on FINRA’s current financial projections and its path forward for funding FINRA’s mission of protecting investors and promoting market integrity, while facilitating vibrant capital markets.
The next FINRA Board of Governors meeting is scheduled for December 6-7. More information regarding the Board's operations, including the membership and responsibilities of its committees, is available at www.finra.org/governance.
About FINRA
FINRA is a not-for-profit organization dedicated to investor protection and market integrity. It regulates one critical part of the securities industry—brokerage firms doing business with the public in the U.S. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.
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