FINRA Seeks Feedback on Lessons Learned From COVID

By Melanie Waddell

News December 23, 2020 at 02:15 PM

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The Financial Industry Regulatory Authority is seeking feedback from broker-dealers on lessons learned during the pandemic — namely changes to BDs' operations and business models, and the effectiveness of business continuity planning.

BDs, FINRA said in Regulatory Notice 20-42, "have made rapid and unprecedented changes to their business operations in order to prioritize the health and safety of firm personnel and investors, while maintaining the public's access to capital markets."

Changes include widespread use of remote offices and alternative work arrangements and new and expanded methods of engaging with personnel and investors.

FINRA is seeking feedback on such areas as changes to business operations due to remote work, a retrospective review of its rules as well as business continuity planning.

FINRA seeks to identify rules or rule sets, or their attendant administrative processes, that would benefit from an assessment based on stakeholders' experiences during the pandemic.

As to business continuity planning, FINRA wants feedback on whether there's a need for any amendments to Rule 4370, Business Continuity Plans and Emergency Contact Information, to address issues raised during the pandemic.

Rule 4370 requires broker-dealers to create, maintain and review at least annually and update upon any material change, a written business continuity plan identifying procedures relating to an emergency or significant business disruption.

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