Skip to main content

Retrospective Rule Review

Updated as of March 25, 2024

FINRA believes that it is appropriate, after a reasonable period of time, to look back at its significant rulemakings to determine whether a FINRA rule or rule set is meeting its intended investor protection objectives by reasonably efficient means, particularly in light of environmental, industry and market changes. These retrospective reviews look at the substance and application of a rule or rule set, including any gaps or unintended consequences, as well as FINRA's processes to administer the rules.

“There’s a discipline to asking certain kinds of questions when you are going to do a regulatory intervention…Getting in the practice of asking those questions makes us a better regulator.”

— Jonathan Sokobin, FINRA Chief Economist

The review process typically consists of an assessment phase and an action phase. During the assessment phase, FINRA will review the efficacy and efficiency of the rule or rule set as currently implemented, including FINRA's internal administrative processes. To that end, FINRA will seek input from affected parties and experts, including its advisory committees, subject-matter experts inside and outside of the organization, and other interested parties, including industry members, investors, trade groups and the public.

The subsequent action phase effectuates any recommendations arising from the assessment, which could include, among others, changes to the rule or its administration, guidance or systems upgrades. However, not every assessment will result in rule changes; the assessment may conclude that the rule remains relevant and appropriately tailored to meet its objectives. FINRA will separately engage in its usual rulemaking process to propose amendments to the rules, which process will include input from FINRA's advisory committees and an opportunity for comment on specific proposed revisions in a Regulatory Notice or rule filing with the SEC, or both.

Below is information on the rules FINRA has or is reviewing as part of our retrospective review program.

DescriptionStatusLinksRelated Rulemaking or Guidance
Diversity and Inclusion

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 21-17Feedback Summary
Pandemic Review

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 20-42
(review seeking lessons learned from COVID-19)

 

Regulatory Notice 21-44
(BCP and lessons from the COVID-19 pandemic)

SR-FINRA-2023-006
(rule filing to adopt remote supervisory location (RSL) rule)

SR-FINRA-2023-007
(rule filing to adopt remote inspection pilot program)

Regulatory Notice 24-02
(implementation regarding RSL and Remote Inspections Pilot)

See also
Regulatory Notice 17-38
(proposal to amend supervision rule to allow for remote inspections in certain instances)

Regulatory Notice 20-08
(pandemic-related BCP guidance and regulatory relief)

Regulatory Notice 20-16
(firm practices to transition to a remote work environment during the pandemic

Reporting Requirements

FINRA Rule 4530

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 20-02
(retro review)
 

Senior Investors/Exploitation;
Borrowing and Lending

FINRA Rule 2165
FINRA Rule 3240

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 19-27
(retro review)

 

Regulatory Notice 20-34
(follow on proposal to amend Rule 2165 and summary of feedback from retro review)

SR-FINRA-2021-016
(order approving changes to Rule 2165)

Regulatory Notice 21-43
(follow on proposal to amend Rule 3240 and summary of feedback from retro review)

Regulatory Notice 22-05
(notice announcing adoption of amendments to FINRA Rule 2165)

SR-FINRA-2024-001
(proposal to amend Rule 3240)

Business Continuity Planning

FINRA Rule 4370

Assessment Phase Complete

Action Phase Complete

Regulatory Notice 19-06
(retro review)

Regulatory Notice 21-44
(explaining no change in response to this retro review and the Pandemic Review)

See also 
Regulatory Notice 20- 08
(pandemic-related BCP guidance and regulatory relief)

 

Annual Compliance Meeting

FINRA Rule 3110(a)(7) and SM .04

Assessment Phase Complete

Action Phase Complete

Regulatory Notice 18-14
(retro review)

Regulatory Notice 19-34
(explaining no change in response to retro review)

 

Carrying Agreements

FINRA Rule 4311

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 18-10
(retro review)

 

 

Payments for Market Making

FINRA Rule 5250

Assessment Phase Complete

Action Phase Complete

Regulatory Notice 17-41
(retro review)

Regulatory Notice 20-03
(explaining no change in response to retro review)

 

Outside Business Activities

FINRA Rule 3270

Private Securities Transactions

FINRA Rule 3280

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 17-20
(retro review)

 

Regulatory Notice 18-08
(follow on proposal to replace
Rules 3270 and 3280)

 

Capital Raising

FINRA Rule 5110
FINRA Rule 5130
FINRA Rule 5131

Assessment Phase Complete

Action Phase Complete

Regulatory Notice 17-14
(retro review)

 

Regulatory Notice 17-15
(proposed changes to Rule 5110)

SR-FINRA-2019-012
(order approving changes to Rule 5110)

Regulatory Notice 20-10
(explaining the changes to Rule 5110)

SR-FINRA-2019-022
(order approving follow on amendments to Rules 5130 and 5131)

See also

Regulatory Notice 20-04
(requesting comment on amendments to CAB Rules)

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 23-09
(request for comment on FINRA rules impacting capital formation)

 

 

MAP

FINRA Rule 1000 Series

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 15-10

Original 2016 retrospective rule review report

Regulatory Notice 18-23
(follow on proposal to amend the MAP rules)

 

Gifts and Non-Cash
Compensation

FINRA Rule 3220
FINRA Rule 3221
FINRA Rule 3222

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 14-15
(retro review)

Original 2014 retrospective rule review report

Regulatory Notice 16-29
(follow on proposal to amend Rule 3220 and adopt new Rules 3221 and 3222)

 

Communications with the Public

FINRA Rule 2210
FINRA Rule 2213
FINRA Rule 2214

Assessment Phase Complete

Action Phase Ongoing

Regulatory Notice 14-14
(retro review)

Original 2014 retrospective rule review report

Regulatory Notice 15-17
(follow on Q&As)

SR-FINRA-2016-018
order approving changes to Rules 2210, 2213 and 2214)

Regulatory Notice 17-06
(follow on proposal to amend Rule 2210)

Regulatory Notice 17-18
(follow on guidance)

SR-FINRA-2023-016
(proposal to permit certain projections of performance)

Please direct any questions regarding the retrospective review program to the Office of the Chief Economist or the Office of the General Counsel.