The Financial Industry Regulatory Authority (FINRA) made several changes to some of its existing advisory committees and announced the formation of two new advisory committees.
The two new committees — the Clearing Firm Advisory Committee and Capital Acquisition and Placement Broker Committee — were established to gain feedback from these member-firm segments. Specifically, they will discuss with issues facing small firms whose customer accounts are carried at clearing firms and small firms engaged in capital raising activities.
Among existing committees, FINRA is broadening the Membership Committee’s composition to include medium-size firms, independent dealers, and firms affiliated with insurance companies. Further, it is disbanding the Independent Dealer/Insurance Affiliate Committee and Regulatory Advisory Committee since their duties are being assumed by the Membership Committee.
In addition, it is renaming the Compliance Advisory Committee and Small Firm Advisory Board as the Large Firm Advisory Committee and Small Firm Advisory Committee, respectively. These new names better reflect their respective purposes. Additionally, FINRA is proposing to reorganize the District Committees into Regional Committees that mirror FINRA’s 11 districts.
The changes are primarily in response to feedback FINRA President and CEO Robert Cook gathered on a recent listening tour.
Overall, FINRA has 15 advisory committees. They were established to provide feedback on rule proposals, regulatory initiatives, and industry issues. Further, FINRA consults with 16 ad hoc committees that convene on specific subject-matter issues. Several of these committees have openings, including the National Adjudicatory Council, District/Regional Committees, the FINRA Board of Governors and the FINRA Investor Education Foundation Board of Directors. FINRA published a Special Notice with directions on how to apply. Interested parties can submit their applications through FINRA’s online Engagement Portal.
“FINRA’s advisory committees provide valuable input on regulatory and policy initiatives related to FINRA’s mission. These enhancements to the advisory committees and the introduction of the Engagement Portal will ensure that FINRA continues to benefit from industry, investor, and other stakeholder expertise and perspectives on critical issues,” Marcia Asquith, FINRA executive vice president, board and external relations, said.