Industry publication ThinkAdvisor turned to Chicago partner James Lundy for comments on the launch of FINRA’s Reg BI webpage, as well as the financial regulatory organization’s communication efforts to keep broker-dealers in compliance with the SEC’s rule.
In the article “FINRA Launches Reg BI Webpage, Plans Workshops,” the publication said that the webpage was designed to help broker-dealers comply with Reg BI and is urging broker-dealers to submit questions to the securities regulator about Reg BI and the agency’s customer relationship summary, Form CRS.
In Regulatory Notice 19-26, FINRA stated that it will produce written and online content to assist firms, as appropriate, and that the broker-dealer self-regulator plans to hold in-person meetings and workshops to assist firms with their implementation efforts.
The webpage also states that FINRA will review its “rules to see whether changes are needed to align FINRA rules with the SEC’s rulemaking,” and that any proposed changes will be filed with the SEC for public comment and available on FINRA’s website.
Lundy told ThinkAdvisor that while FINRA’s “notice advising its members to contact the SEC and to work with FINRA is a positive, it’s unclear, and even unclear in the Notice and on the FINRA website, whether or not FINRA will, in fact, finalize rules that will fall under Reg BI.”
Lundy continued, noting that FINRA has “been very clear they plan to work with the SEC and member firms to get into compliance and educate their staff on exams and how it [Reg BI] will be enforced.”
“What’s unclear is if FINRA will finalize rules and examine and enforce for those rules as well,” Lundy added.
According to Lundy, FINRA could issue a rule before or after Reg BI’s effective date, which is June 30, 2020.