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FINRA Board of Governors Meeting – May 2024 Report

Board Approves 2023 Annual Financial Report, Adds New Members to Advisory Committees, and Discusses Advanced Analytics Strategic Initiative

The FINRA Board of Governors convened for their second meeting of the year on May 8-9, 2024. Key decisions and updates included the approval of the 2023 Annual Financial Report, appointment of new Advisory Committee members, and insights into FINRA’s Advanced Analytics Strategic Initiative. The Board also received several operational updates and engaged in ongoing discussions about long-term financial planning.

Key Highlights

Approval of 2023 Annual Financial Report

The Board approved FINRA’s 2023 Annual Financial Report, which will be made publicly available in the upcoming weeks. This report, adhering to U.S. generally accepted accounting principles, outlines how FINRA manages its finances to uphold its mission of investor protection and market integrity. This transparency effort also includes the publication of FINRA’s Financial Guiding Principles, Annual Budget Summary, and the annual Report on the Use of FINRA’s Fine Monies, which was approved in March.

New Members for Advisory Committees

Starting June 1, new members will join FINRA’s Advisory Committees, serving rolling three-year terms. This rotation aims to provide more opportunities for individuals interested in contributing.

“We are delighted to welcome the new members of the Advisory Committees. Participation and engagement in the Advisory Committees lead to meaningful feedback on a variety of regulatory matters, and the exchange of ideas from a diverse membership base is a great benefit to the industry,” said FINRA Board Chair Eric Noll.

Advanced Analytics Strategic Initiative

The Board was briefed on the progress of FINRA’s Advanced Analytics Strategic Initiative, which was initially approved in 2021. This initiative enhances FINRA’s data processing capabilities, enabling quicker identification of potential misconduct and improving customer harm mitigation.

“FINRA leverages innovative technology and deep market expertise to support our mission of investor protection and market integrity,” noted FINRA CEO Robert Cook.

Additional Updates

The Board received updates on various programs, including enterprise risk management and cybersecurity. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda also attended the meeting, sharing his priorities and perspectives on broker-dealer industry issues.

Next Meeting

The next FINRA Board of Governors meeting is scheduled for July 24-25, 2024. For more information about the Board’s operations, including committee memberships and responsibilities, please visit FINRA’s website.