ASA Releases Comments on FINRA’s Modern Workplace Rule

ASA Newsroom
Jul 14
2 min read

WASHINGTON – The American Securities Association (ASA) today released comments submitted to the Financial Industry Regulatory Authority (FINRA) outlining recommendations to modernize rules and guidance to reflect the realities of today’s technology-driven workplaces.

“We are encouraged by FINRA’s proactive approach and applaud the commitment to fostering a regulatory environment that keeps pace with industry innovation,” wrote ASA Chief Legal Officer Jessica Giroux. “ASA supports this initiative and looks forward to contributing constructive perspectives to help shape a flexible, forward-looking regulatory framework that benefits all market participants.”

Key Recommendations from ASA’s Comments:

Embrace the modern workplace and technology adoption.
Align branch offices and office definitions with hybrid work models.
Modernize FINRA Rule 3110.
Modernize registration forms (e.g., Forms U4, U5, BD) to reflect decentralized workforces.
Embrace electronic delivery for disclosures and communication as the default option with an opt-out mechanism for those less comfortable with technology.
Clarify requirements for “business as such” communications and provide examples of acceptable practices.
Enhance Rule 2165 to allow broader use of temporary holds for suspected exploitation and promote cross-regulator data sharing to identify fraud patterns.
Harmonize FINRA rules with SEC, state, and other SRO requirements to reduce redundancies.

Read ASA’s full submission here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.