As part of its ongoing rule modernization effort, the U.S. Financial Industry Regulatory Authority Inc. (FINRA) is pursuing a series of rule changes.
At its latest board meeting, the self-regulatory organization (SRO) approved five proposed rule changes that aim to streamline certain requirements — including reduced exam waiting periods, allowing for electronic delivery of regulatory information and testimony, and streamlining certain order approval expectations.
Additionally, it’s planning changes to give participants in arbitration procedures greater input in replacing arbitrators and reforming reconciliation requirements for certain alternative investments to conform with relief recently granted by the U.S. Securities and Exchange Commission for those investments.
“These rule proposals reflect our commitment to regulatory efficiency and responsiveness to the needs of today’s securities industry and markets without compromising investor protection,” said Scott Curtis, chair of FINRA’s board of governors, in a release.
The SRO said the rule proposals reflect the input that it received on its rule modernization initiative, FINRA Forward, which aims to enhance the effectiveness and efficiency of its rules.
“By shortening exam waiting periods, embracing electronic delivery of regulatory requests, streamlining operational requirements and updating alternative investment reconciliation requirements, we are reducing unnecessary burdens on member firms and supporting more efficient market operations,” he said, adding that the changes to arbitration procedures is intended to enhance fairness in that mechanism.