FINRA Outlines Q4 Regulatory Priorities

Following its recent efforts to provide additional clarity about social media, artificial intelligence and electronic communications, the Financial Industry Regulatory Authority released on Monday its quarterly regulatory policy agenda, outlining its current priorities, active rule filings and recently approved rule changes.

“We have advanced more than 20 [Securities and Exchange Commission] rule filings since launching our rule modernization initiative in April 2025,” said Robert Colby, FINRA’s chief legal officer, in a statement. “Yet there are still more ridges to climb. Some are big; some are small.”

For retirement plan advisers and plan sponsors, several of FINRA’s priorities focus on areas in which firms have sought greater regulatory clarity, particularly the use of artificial intelligence, electronic delivery of disclosures, supervisory requirements and fraud prevention measures.

Current Priorities

Among FINRA’s 21 current regulatory priorities, initiatives relevant to advisers and workplace investors include:

• Electronic Delivery: FINRA is pursuing a proposal that would facilitate default electronic delivery of information to customers. The regulator intends to move forward in tandem with the SEC’s proposed Regulation E-Delivery, if possible, though no implementation timeline has been established.
  “Easing the electronic delivery of required information—while preserving investors’ ability to opt for paper delivery—will reduce the risk of physical mail theft targeting financial information and allow investors to receive more timely information,” said Colby.
• Account Transfer Fraud: Following a February roundtable on the issue, the regulator is drafting a regulatory notice seeking industry feedback on ways to deter fraud that is carried out while opening and transferring accounts. The note is expected to be released in the fourth quarter.
• Continuing Education: FINRA released regulatory element topics for 2027 to its continuing education program for certain registered representatives, such as investment banking representatives and compliance officials. The proposal has been approved by FINRA’s board, and an SEC filing is expected by the fourth quarter of 2026.
• Reporting Requirements: FINRA is developing guidance related to customer complaint reporting under Rule 4530, which requires broker/dealers and member firms to report internal violations and customer complaints. After consulting with committees and its board, the regulator is drafting a regulatory notice that is expected to be published this quarter.
• Artificial Intelligence: Following a September roundtable, the regulator plans to continue engaging with industry stakeholders and expects to issue additional guidance on the use of AI tools.
• Accredited Investors: FINRA is developing an examination that would allow individuals to qualify as accredited investors. The proposal has been approved by the board, and the SEC issued a request for comment on the initiative on September 30. A timeline for next steps has not yet been determined.

Active Rule Filings

FINRA’s agenda also highlighted four proposed rule changes currently under review by the SEC.

Among them is a proposal to amend Rule 2210 to allow the use of performance projections and targeted returns under specified conditions, a change industry professionals have closely watched. Other filings would simplify reconciliation requirements for certain alternative investments; expand firms’ ability to delay transactions suspected of involving fraud; and revise arbitration procedures related to arbitrator selection.

The agenda also highlighted recently approved rule changes. Notably, the SEC approved FINRA’s proposal to exempt certain collective investment trusts from Rules 5130 and 5131(b), which govern participation in new issue offerings. FINRA plans to announce the rule’s effective date in a forthcoming regulatory notice.