Report From FINRA Board of Governors Meeting – December 2024

Board Appoints Public Governor and Discusses Budget, Rules Regarding Outside Business Activities and Private Securities Transactions, and 2025 Regulatory Oversight Report

WASHINGTON--(BUSINESS WIRE)--FINRA’s Board of Governors met on December 4-5. The agenda included discussions around FINRA’s 2025 budget, FINRA’s Outside Business Activities and Private Securities Transactions rules, and an overview of the 2025 FINRA Annual Regulatory Oversight Report.

The Board also recently appointed a Public Governor, Erik Sirri, Emeritus Professor of Finance at Babson College and a former Director of the SEC's Division of Trading and Markets, who participated in his first Board meeting. Professor Sirri has extensive experience with securities regulation and his research focuses on the interaction of securities law and finance, investment management, securities market structure and capital markets.

“I am pleased to welcome Erik to the Board and I look forward to working with him. His wide range of expertise and experience will contribute significantly to the Board’s efforts to provide strategic guidance for FINRA’s vital work of protecting investors and ensuring market integrity,” said FINRA Board Chair Eric Noll.

The Board approved two items during the meeting: FINRA’s 2025 budget and FINRA’s plan to publish a Regulatory Notice soliciting comments on a proposal to replace FINRA’s Outside Business Activities and Private Securities Transactions Rules with a single Outside Activities Requirements Rule. The Notice will provide specifics about the proposed rule, and soliciting comments will allow FINRA to incorporate perspectives on how to ensure investor protection while addressing the varying business models of member firms.

FINRA staff presented the Board with an overview of the 2025 FINRA Annual Regulatory Oversight Report, which consolidates information gathered from across our regulatory operations that member firms can then leverage to enhance their compliance programs. Specifically, the report, which is slated to be published in January, summarizes noteworthy findings from recent examinations and other interactions with firms, outlines effective practices, highlights applicable rules and identifies resources for member firms.

“The FINRA Annual Regulatory Oversight Report includes findings from across FINRA’s Member Supervision, Market Regulation and Enforcement programs that provide critical information to member firms. Compliance challenges continue to evolve as the industry does, highlighting the importance of this report. We look forward to sharing the full report in early 2025,” said FINRA CEO Robert Cook.

The Board appointed new members to the Small Firm Advisory Committee (SFAC) and National Adjudicatory Council (NAC). FINRA will also soon publish an Election Notice announcing these newly appointed members, as well as the newly elected members of the SFAC and regional committees. It will also include an update on the NAC election.

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.