17 Jun 2025
⚖️FINRA Proposes Rule Change on Expulsion Effectiveness
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Stay the Effectiveness of Specified Expulsions and FINRA Actions
Summary
The Financial Industry Regulatory Authority (FINRA) proposes a rule change that stays the effectiveness of certain expulsions and related FINRA actions against member firms until reviewed by the SEC. This aligns with legal precedents and aims to enhance clarity and fairness in the discipline of member firms while maintaining investor protection standards.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed FINRA rule change involves staying the effectiveness of certain disciplinary actions against member firms pending SEC review, which directly affects compliance and regulatory requirements for financial institutions. This impacts business owners and executives by potentially altering membership status and sanctions, influencing operational stability.