FINRA Revamps Advisory Committees, Adds 2 New Ones

The broker-dealer regulator announced last March that it was taking comments from BDs on how to enhance FINRA's programs, including its committees, for engagement with its members and other stakeholders.

By creating the new Clearing Firm Advisory Committee and Capital Acquisition and Placement Broker Committee, FINRA said it hopes to "gain important feedback from these member-firm segments, including with respect to issues facing small firms whose customer accounts are carried at clearing firms and small firms engaged in capital-raising activities."

The following changes were also made to these FINRA committees:

• Membership Committee's composition now includes medium-size firms, independent dealers and firms affiliated with insurance companies;

• The Independent Dealer/Insurance Affiliate Committee and Regulatory Advisory Committee have been disbanded, as their respective purposes are being assumed by the Membership Committee;

• The Compliance Advisory Committee and Small Firm Advisory Board are being renamed the Large Firm Advisory Committee and Small Firm Advisory Committee, respectively, to better reflect their respective purposes; and

• FINRA is asking for Securities and Exchange Commission approval to reorganize its District Committees into Regional Committees that "mirror the regions in which FINRA's 11 districts are administratively grouped." The proposal also includes eligibility and voting standards designed to result in committees that better reflect the industry in each region.

A FINRA spokesman said that FINRA has not yet filed with the SEC the proposal to reorganize the district committees.

— Check out FINRA Files to Amend Arbitrator Hearing Procedures on ThinkAdvisor.