FINRA Launches “FINRA Forward” Initiative to Update Rules, Improve Compliance, and Combat Fraud
The Financial Industry Regulatory Authority (FINRA) has recently launched a new initiative, FINRA Forward, aimed at modernizing its regulatory framework, enhancing member firm compliance, and strengthening protections against cybersecurity and fraud threats, according to the self-regulator. The FINRA Forward initiative focuses on three key areas:
1. Modernizing FINRA Rules
Recognizing the rapid evolution of capital markets and technology, The Financial Industry Regulatory Authority (FINRA) is undertaking a broad review of its rules to reduce regulatory burdens, encourage innovation, and support fair competition. Regulatory Notice 25-04 invites feedback from member firms, investors, and other stakeholders regarding which rules should be updated, modernized, or eliminated altogether.
Two areas of initial focus include:
- Rules affecting firms’ support of capital formation.
- Rules impacting the ability to operate workplaces with modern technologies and practices.
Through Notices 25-06 and 25-07, FINRA is seeking specific comments, but it encourages ongoing feedback to ensure its regulations remain effective and relevant.
2. Empowering Member Firm Compliance
Acknowledging the high cost of compliance—especially for smaller firms—FINRA is working to provide better resources, feedback, and communication to help firms meet regulatory obligations more efficiently. The initiative aims to:
- Expand compliance guides and events tailored to firms of different sizes and business models.
- Improve feedback loops so firms can learn from regulatory examinations and oversight activities.
- Reduce unnecessary burdens by optimizing data requests, examinations, and information-sharing practices.
FINRA is looking to strike a balance between maintaining strong oversight and reducing inefficiencies that can place undue strain on firms.
3. Combating Cybersecurity and Fraud Risks
With cyber threats and fraudulent activities becoming more sophisticated, FINRA is increasing its focus on helping firms enhance their resilience. A new Financial Intelligence Fusion Center will soon be operational, tasked with collecting and disseminating real-time threat intelligence to member firms through a secure portal.
Additionally, FINRA plans to:
- Share more actionable and timely intelligence tailored to firms’ specific risks.
- Expand practical tools, such as cybersecurity tabletop exercises, to help firms prepare for and mitigate potential incidents.
This effort is particularly designed to support small- and mid-sized firms that may lack their own cybersecurity intelligence resources.
Why This Matters for Investors
For investors, FINRA’s Forward initiative could signal stronger protections and more adaptable regulatory standards in the years ahead. As always, The White Law Group remains committed to monitoring regulatory developments that impact investors and to helping clients protect their financial interests when violations occur.
If you have concerns about your investments or believe you may have suffered losses due to broker misconduct or investment fraud, please contact The White Law Group for a free consultation at 888-637-5510.
About The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. The firm represents investors nationwide in claims against brokerage firms through FINRA arbitration. Visit our homepage for more information on investor recovery options.