Securities Regulation Daily Wrap Up, BROKER-DEALERS—FINRA board streamlines rules in line with modernization effort, (Mar 17, 2026)

By Anne Sherry, J.D.

The five approved rule proposals are meant to ease burdens without compromising investor protection.

At its first meeting of the year, FINRA’s Board of Governors approved five rule proposals in line with the FINRA Forward rule modernization initiative. The five rules shorten exam waiting periods, embrace electronic delivery of regulatory requests, streamline operational requirements, and update alternative investment reconciliation requirements.

FINRA last year launched FINRA Forward, an effort to update and enhance its rules, guidance and processes to ease compliance burdens while preserving investor protections. In a recent blog post, Chief Legal Officer Robert Colby provided an update on the FINRA Forward initiative and announced the organization’s new practice of publishing a quarterly regulatory policy agenda.

The five rule proposals approved at the Board’s recent meeting reflect feedback that FINRA received on the modernization initiative. Scott Curtis, Chair of the FINRA Board of Governors, said that the proposals “reflect our commitment to regulatory efficiency and responsiveness to the needs of today's securities industry and markets without compromising investor protection.”

Specifically, the Board approved proposals to:

• shorten the waiting periods to retake FINRA qualification exams;

• deliver electronically requests for information and testimony to member firms through FINRA Gateway, recognizing that member firms already use FINRA’s systems for registration and other compliance functions;

• eliminate the requirement that late allocations of bulk investment adviser orders be approved by a firm principal;

• adjust reconciliation requirements for certain alternative investments to conform with recent SEC no-action relief; and

• amend FINRA’s Codes of Arbitration Procedure to provide parties with more input into replacing arbitrators and codify FINRA’s current practice of compensating replacement arbitrators for reviewing recordings and transcripts.

The Board also received briefings including an update on enhancements to FINRA's enforcement program from Bill St. Louis, Executive Vice President and Head of Enforcement. As is customary for its first meeting of the year, the Board approved the allocation of prior-year fines to various initiatives. FINRA said that it will release details about the allocations in the upcoming Report on the Use of 2025 Fine Monies.

RegulatoryActivity: BrokerDealers FINRANews