The U.S. Financial Industry Regulatory Authority Inc. (FINRA) is investing in a new enforcement platform and moving ahead with several rule changes, including an effort to curb reps cheating on proficiency exams.
In a report following its latest virtual board meeting, FINRA announced that its board has approved a proposal to enhance its enforcement division’s technology with a new system that promises improved case workflow and reduced maintenance costs.
According to FINRA CEO, Robert Cook, the existing system is 13 years old and poses challenges that can slow down the disciplinary process.
Cook said the new system “will lead to greater operational effectiveness within the enforcement department” while also lowering operating costs.
On the rule-making front, FINRA’s board approved three new proposals, including the adoption of new procedures designed to combat cheating on industry qualification exams.
The rule proposals will be published for public comment by FINRA. Prior to coming into effect, however, the changes will have to be approved by the U.S. Securities and Exchange Commission (SEC).