FINRA Board Approves Key Rule Amendments & Advisory Committee Appointments

During the FINRA Board of Governors meeting held on June 4-5, 2025, two critical rule proposals were approved that will impact broker-dealers significantly. The amendments to FINRA Rule 4311, which governs Carrying Agreements, and FINRA Rule 2210, which regulates Communications with the Public, are designed to enhance transparency and compliance within the industry. Firms are expected to review and update their existing agreements and communication strategies to align with these new requirements.

Additionally, the Board appointed new members to its Advisory Committees, which will play a crucial role in guiding FINRA's strategic direction and regulatory initiatives. The Board also discussed ongoing efforts in enterprise risk management and cybersecurity, emphasizing the importance of robust risk frameworks in today's evolving financial landscape. Compliance professionals should prioritize these updates and ensure that their organizations are prepared to implement the necessary changes by the effective dates of the new rules, which will be communicated in forthcoming regulatory notices.

This meeting underscores FINRA's commitment to enhancing regulatory oversight and protecting investors while fostering a resilient financial system.