FINRA

Join FINRA on our newest initiative: Get Your Head in the Trade—a campaign to help novice, self-directed investors conquer investing FOMO and be sure an investment is right for them. Go to finra.org/tradesmart to explore and share resources and tools to ignite investor understanding and confidence. Learn more here ▶️ https://bit.ly/4cUPKBI

🚨 Member firms should be aware of an alleged large-scale data breach possibly affecting Oracle Cloud services at firms and third-party providers. FINRA recommends that firms review this information to assess any potential impact to their operations, as well as with third-party providers who provide services to the firm. Learn more: https://bit.ly/421dYIo

This episode of #FINRAUnscripted features Elizabeth Yoka from our Vulnerable Adults and Seniors Team (VAST). Here we discuss the FINRA Securities Helpline for Seniors and its decade-long commitment to investor protection. Tune in to our latest podcast to learn more 🎧: https://bit.ly/4i0Zc9g

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FINRA marks a decade of the FINRA Securities Helpline for Seniors, a vital resource safeguarding the interests of seniors and vulnerable investors. Established to provide direct access to FINRA's specially trained staff, the Helpline offers assistance with brokerage account inquiries, investment concerns, and other related matters. Over the past ten years, this resource has demonstrated remarkable effectiveness in protecting and supporting our most vulnerable investors. We encourage you to review the Helpline's significant impact below and learn more here: https://bit.ly/4lazzFt

The 2025 SIFMA C&L Annual Seminar wrapped up today in Austin, with the always-popular Ask FINRA panel discussion. Here are our notes from the discussion, which built upon FINRA president and CEO Robert Cook’s discussion yesterday. ➡️ Rule Modernization: Rules are powerful things if done well, and principles-based rules in particular stand the test of time. But, all must be maintained. FINRA has undertaken a broad review of its rulebook, with three Reg Notices on associated persons, outside activities, and capital formation due by May 12. Reg Notice 2025-07 is expected soon and will focus on the modern workplace. ➡️ Extended Trading Hours: As detailed in its Risk Disclosure, extended trading hours may carry risks including lower liquidity, wider spreads, and more. Additional risks may be incurred during overnight trading, when SIPs are not open. It will be critical for customers to understand the framework and contours. ➡️ Artificial Intelligence: FINRA is seeing both excitement and opportunity commensurate with activity. Current use cases can range from coding assistance to translation services (languages, but also voice to text), and mostly focus on AI’s capability to summarize information for analysts, compliance officers, and risk officers. Firms are proceeding cautiously as they explore client-facing use, with good governance processes essential. FINRA rules remain technology-neutral, and there is no plan at this time for specific AI rules. FINRA itself has been using AI in the surveillance space for years; now, it is exploring Gen AI for exams and risk monitoring, particularly as a recommendation engine for investor complaints. ➡️ Cybersecurity and Fraud: Firms must understand their entire ecosphere, with particular attention to third- and fourth-party vendor management. Do you have a backup? Is there a backup to the backup? FINRA is rolling out a series of tabletop exercises (TTX) for firms and encourages broad participation across an organization. On quantum computing, firms should look opportunistically for faster computing and reduced costs, but look closely at risks related to encryption. More information is in the 2025 FINRA Regulatory Oversight Report. Thanks to Andre Owens, Stephanie Dumont, Robert Colby, Greg A. Ruppert, and Nathaniel Stankard for their time and perspectives. Stay tuned for the full post-Seminar debrief from SIFMA Insights. Safe travels!

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SIFMA EVP and General Counsel Saima Ahmed had the opportunity to sit down with FINRA President and CEO Robert Cook at the #SIFMACL 2025 Annual Seminar. These bullets highlight key themes from their conversation, including three of FINRA’s newest initiatives to  modernize rules and reduce unnecessary burdens, enhance FINRA’s support of member firm compliance, and expand cybersecurity and fraud prevention services. Initiative 1️⃣: Modernizing the Rulebook - FINRA is taking a fresh look at which rules could be modernized. In particular, Cook noted that as part of FINRA's ongoing commitment to improvement, it is focused on capital formation and the modern workplace, including changing processes and communications for today’s world. Industry comments suggesting additional areas of focus are welcome. Initiative 2️⃣: Enabling Member Firm Compliance - FINRA is exploring how it can create a feedback loop between regulatory programs and member firms to enable them to get in front of issues and manage compliance risks. FINRA is also examining ways to reduce unnecessary burdens on firms stemming from their examination, investigation, and oversight functions while maintaining investor protection. Initiative 3️⃣: Partnering to Combat Fraud and Cyber Risk - Cyber risk and fraud are a huge problem, and it takes everyone-on-board to combat threats. FINRA will roll out new services, including creating an Intelligence Fusion Center that facilitates information sharing. Also of note: 🏦 The Regulatory Path for Crypto - Though the policies will be driven by the federal government and the SEC, FINRA is already working with the SEC’s crypto task force. Cook noted that he wants to forge a regulatory path forward but with an eye on standards for investor protections. 🐈 The CAT Needs Attention - Cook noted that he is – and has been – supportive of the SEC’s recent exemption from the requirement to report certain personally identifiable information (PII) to the Consolidated Audit Trail (CAT). However, he does not believe the agency went far enough, i.e. eliminate all PII and delete PII already reported. More here: https://bit.ly/4hKc9nq We'll be sending one more set of notes tomorrow, at the conclusion of the Seminar. Sign up to receive them in your inbox here! https://bit.ly/43Jr7XR

FINRA CEO Robert Cook spoke at #SIFMACL today, outlining our key enterprise initiatives, which include: ▶️ Modernizing the rule book and oversight ▶️ Reducing unnecessary burdens and enhancing how we support member firm compliance to better protect investors and safeguard markets ▶️ Partnering with the industry to fight fraud and cyber risks Stay connected with us – more details coming soon on these important initiatives.

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