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Finra Opens Committees to More Members

By Alex Padalka February 7, 2018

Finra’s self-analysis over the past several months has apparently made it realize it should make it easier for its members to participate in its work.

The industry’s self-regulator has announced what it dubs “comprehensive changes” to its advisor committee structure that take into account feedback President and CEO Robert Cook got on his listening tour as well as comments received through the regulator’s self-review, according to a press release from Finra. Among the changes are the addition of two new committees dealing with clearing firms and capital acquisition brokers, as well as new information on how member firms can get involved in Finra ad hoc and advisory committees, its adjudicatory council, board of governors, the board of directors for its investor education foundation and various regional committees, the regulator says.

Perhaps more importantly, Finra is expanding the composition of its membership committee to independent dealers, medium-size firms and companies affiliated with insurance firms, according to the press release. The regulator is also rolling out an online portal that will let people “express interest” in serving on its committees “in a more streamlined manner” — the expressing of interest, that is, not necessarily serving on the committees.

Finra

Under Cook, Finra has claimed it wants to increase transparency into its committee processes. In November, the regulator began publishing rosters of each advisor committee on its website, for example, according to the press release. In all, Finra now has 15 advisory committees, tasked with commenting on rule proposals and industry issues, and 16 ad hoc committees created for specific issues, the regulator says.