FINRA Extends Feedback Period on Rule Modernization
The Financial Industry Regulatory Authority has extended the feedback period for its wide ranging rule modernization effort known as FINRA Forward, giving firms, advisers, and other stakeholders more time to weigh in on the future of financial regulation. The initiative, launched in early 2025, is intended to update rules that many in the industry argue have failed to keep pace with changes in markets, technology, and workplace practices.
FINRA Forward is designed to reexamine regulations that may impede capital formation, limit operational flexibility, or fail to reflect modern business realities such as remote work and digital platforms. FINRA President and Chief Executive Robert Cook stressed the importance of this reassessment, saying it is critical to hear broadly from member firms, investors, and others about which parts of the rulebook should be reviewed.
The extension of the feedback window highlights FINRA’s interest in collaborative regulation and opens the door for firms to influence change directly. Industry leaders see this as a chance to press for adjustments that could improve efficiency, reduce unnecessary compliance costs, and support innovation in financial products and services. By contributing perspectives on outdated or burdensome requirements, firms may help shape a rulebook that better reflects the realities of twenty first century markets.
Observers note that firms should use the additional time to review their current compliance experiences, identify rules that may no longer serve their intended purpose, and develop constructive proposals. Coordination among compliance, legal, and operations teams will be important to present comprehensive and persuasive feedback. Staying alert to further updates from FINRA will also help firms remain active in shaping outcomes.
The modernization initiative is viewed as a rare opportunity for the industry to influence its regulatory environment. By engaging now, stakeholders can help foster a framework that balances investor protection with innovation and competitiveness, ensuring that regulation evolves alongside the financial markets it is meant to oversee.
Source: Investment News