Report From FINRA Board of Governors Meeting – June 2025

Board Approves Two Rule Proposals, Appoints New Advisory Committee Members and Approves the 2024 Annual Financial Report

WASHINGTON--(BUSINESS WIRE)--
FINRA’s Board of Governors met June 4-5. The Board approved two rule proposals, approved the appointments of new Advisory Committee members, met with Securities and Exchange Commission (SEC) Commissioner Mark Uyeda, and received updates on FINRA’s long-term financial planning and FINRA’s enterprise risk management and cybersecurity program.

Rulemaking

The Board approved the following rule proposals at the June meeting. General information about FINRA’s rulemaking process is available here.

• Amendments to FINRA Rule 4311 (Carrying Agreements)—The Board approved issuing a Regulatory Notice to solicit comment on proposed amendments to Rule 4311, which governs requirements when member firms enter into agreements for the carrying of customer accounts. The amendments would provide greater clarity around tri-party arrangements where one introducing firm contracts through another introducing firm to receive carrying and clearing services; clarify the allocation of responsibilities under carrying agreements; address the application of the rule to omnibus carrying arrangements; and streamline requirements relating to the furnishing of reports by carrying firms to introducing firm.

• Amendments to FINRA Rule 2210 (Communications with the Public)—The amendments would better align the regulatory requirements for broker-dealers and investment advisers related to performance projections in written communications to investors. The amendments would create a narrowly tailored exception to the general prohibition on projections and permit the presentation of projected performance and targeted returns when members meet specified conditions, including adopting policies and procedures, having a reasonable basis for the criteria and assumptions made in calculating the projections or targeted returns, and providing specified information. The amendments will be filed with the SEC for approval.
  

Additional Board Actions and Updates

The Board appointed new members to FINRA’s Advisory Committees, effective June 5. FINRA has 12 advisory committees that provide feedback on rule proposals, regulatory initiatives and industry issues.

“We are excited to welcome the new members of the Advisory Committees. Participation and engagement in the Advisory Committees leads to meaningful feedback on a variety of regulatory matters. The Board values that input as we work to provide strategic guidance for FINRA’s vital work of protecting investors and maintaining market integrity,” said FINRA Board Chair Scott Curtis.

The Board continued discussions around FINRA’s long-term financial planning and approved FINRA’s 2024 Annual Financial Report, which FINRA publishes in accordance with its Financial Guiding Principles. FINRA’s Annual Financial Report will be published later this month.

The Board received several operational updates, including on FINRA’s enterprise risk management and cybersecurity program.

The next FINRA Board meeting is scheduled for September. More information about the Board's operations, including membership and responsibilities of its committees, is available here.

About FINRA

FINRA is a not-for-profit organization dedicated to investor protection and market integrity. FINRA regulates one critical part of the securities industry—member brokerage firms doing business 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250620090460/en/

[email protected]

Source: FINRA