04.30.26

FINRA Releases One-Year Progress Report on Rulebook Revamp

by: Melanie Waddell

The Financial Industry Regulatory Authority (FINRA) has released a one-year progress report on its Forward initiative, outlining efforts to modernize its rulebook, improve transparency and adopt new technologies. The regulator said it now requires staff to complete the same continuing education and qualification exams as industry professionals and is expanding the use of generative AI tools across the organization to improve efficiency and support broker-dealers adapting to AI. The report highlighted finalized and pending rule changes, including an increase in the annual gift limit for registered representatives from $100 to $300. Another proposal awaiting U.S. Securities and Exchange Commission approval would narrow reporting requirements for outside business activities to those posing higher risks. FINRA is also shifting some lower-risk firms to six-year exam cycles, streamlining first-time firm exams and automating examination workflows to better focus on risk-based oversight.

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