FINRA Announces "FINRA Forward" Initiatives to Enhance Regulatory Effectiveness

The Financial Industry Regulatory Authority (FINRA) today announced the launch of "FINRA Forward," a series of initiatives intended to improve the organization's effectiveness and efficiency in fulfilling its mission.

FINRA Forward encompasses three key areas of focus. The first initiative involves the "Modernizing FINRA Rules." Under this, FINRA plans to conduct a broad review of its existing rules with the goals of updating requirements, facilitating innovation, and reducing what it describes as unnecessary burdens.

The second area, "Empowering Member Firm Compliance," aims to enhance how FINRA supports the compliance efforts of its member firms. This is intended to contribute to better investor protection and market safeguarding.

Thirdly, FINRA Forward will address "Combating Cybersecurity and Fraud Risks." This initiative involves expanding FINRA's activities related to cybersecurity and fraud prevention. The stated purpose is to support member firms' capabilities in risk management and resilience against emerging threats, and to better protect both member firms and their investors from harm.

Commenting on the launch of FINRA Forward in a blog post, FINRA CEO Robert Cook wrote, "To serve its mission - promoting investor protection, market integrity, and vibrant capital markets - FINRA must continuously improve its regulatory policies and programs to make them more effective and efficient." He added that while significant progress has been made in fostering a culture of continuous improvement within FINRA, "continuous improvement means our work is never done, especially since capital markets are constantly evolving and new opportunities to do better are always emerging."