Report From FINRA Board of Governors Meeting – May 2024

Board Approves 2023 Annual Financial Report, Adds New Members to Advisory Committees and Hears Latest on FINRA’s Advanced Analytics Strategic Initiative

WASHINGTON--(BUSINESS WIRE)--FINRA’s Board of Governors met on May 8-9 for the second time in 2024. The Board approved FINRA’s 2023 Annual Financial Report, appointed new members to Advisory Committees, was briefed on FINRA’s Advanced Analytics Strategic Initiative, received operational updates and continued discussions around FINRA’s long-term financial planning.

FINRA’s 2023 Annual Financial Report will be publicly available in the coming weeks. Each year, FINRA publishes an Annual Financial Report in accordance with U.S. generally accepted accounting principles that describes how FINRA manages its finances to support its mission of protecting investors and promoting market integrity. The report is one aspect of FINRA’s financial transparency, which includes the posting of FINRA’s Financial Guiding Principles, the release of FINRA’s Annual Budget Summary and the publication of the annual Report on the Use of FINRA’s Fine Monies, which was approved in March.

The new members of FINRA’s Advisory Committees begin their term on June 1. Advisory Committee members serve on rolling three-year terms to increase opportunities for those who are interested in serving.

“We are delighted to welcome the new members of the Advisory Committees. Participation and engagement in the Advisory Committees lead to meaningful feedback on a variety of regulatory matters, and the exchange of ideas from a diverse membership base is a great benefit to the industry,” said FINRA Board Chair Eric Noll.

The Board received several updates, including on FINRA’s enterprise risk management and cybersecurity programs. In addition, the Board heard the latest update on FINRA’s Advanced Analytics Strategic Initiative, which the Board approved in 2021 to enhance the tools and techniques FINRA utilizes to process data from regulatory and public sources, allowing FINRA to identify potential misconduct more quickly and strengthening the ability to mitigate customer harm.

“FINRA leverages innovative technology and deep market expertise to support our mission of investor protection and market integrity,” said FINRA CEO Robert Cook.

The Board also hosted Securities and Exchange Commission (SEC) Commissioner Mark Uyeda, who discussed with the Board his priorities and perspectives regarding issues impacting the broker-dealer industry.

The next FINRA Board of Governors meeting is scheduled for July 24-25, 2024. More information regarding the Board's operations, including the membership and responsibilities of its committees, is available here.

About FINRA

FINRA is a not-for-profit organization dedicated to investor protection and market integrity. FINRA regulates one critical part of the securities industry—member brokerage firms doing business in the U.S. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. For more information, visit www.finra.org.