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FINRA Board of Governors Appoints Sam Deshpande as Newest Governor

WASHINGTON – The FINRA Board of Governors has appointed Sam Deshpande as a new public Governor. Deshpande is Chief Information Officer for Humana, a U.S. health insurance company. His term on the FINRA Board begins immediately, and he will join the Board at its upcoming Board of Governors meeting on July 21-22.

FINRA Launches Educational Initiative Aimed at Newer Investors

FINRA and FINRA Foundation Issue Special Notice Soliciting Comment on Ways to Reach and Educate Novice Investors

WASHINGTON—FINRA today announced it has launched a multi-year, multi-faceted $30 million initiative to explore innovative ways to reach and educate investors, especially new, self-directed retail investors who conduct transactions through online accounts or using mobile apps.

FINRA Orders Record Financial Penalties Against Robinhood Financial LLC

Firm Ordered to Pay Approximately $70 Million for Systemic Supervisory Failures and Significant Harm Suffered by Millions of Customers

WASHINGTON—FINRA announced today that it has fined Robinhood Financial LLC $57 million and ordered the firm to pay approximately $12.6 million in restitution, plus interest, to thousands of harmed customers. The sanctions represent the largest financial penalty ever ordered by FINRA and reflect the scope and seriousness of the violations.

FINRA Orders Merrill Lynch, Pierce, Fenner & Smith, Inc. to Pay $8.4 Million in Restitution to Customers for Supervisory Failures Involving Unit Investment Trusts

WASHINGTON—FINRA announced today that it has ordered Merrill Lynch, Pierce, Fenner & Smith, Inc. to pay more than $8.4 million in restitution to more than 3,000 customers who incurred potentially excessive sales charges in connection with early rollovers of Unit Investment Trusts (UITs). FINRA also fined the firm $3.25 million for failing to reasonably supervise early UIT rollovers.

FINRA, SEC and NASAA Offer Free Resource to Securities Firms to Assist in Detection, Prevention and Reporting of Financial Exploitation of Seniors

Regulators Providing Free Training in Recognition of World Elder Abuse Awareness Day; Program Aims to Assist Firms in Implementing Requirements of Senior Safe Act

WASHINGTON—In recognition of World Elder Abuse Awareness Day, the Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) today announced a new resource intended to assist securities firms in implementing the training requirements of the Senior Safe Act.

FINRA Statement on Temporary Withdrawal of Specialized Arbitrator Roster Rule Filing

Following consultations with the SEC staff, we temporarily withdrew from SEC consideration our rule filing establishing specialized arbitration panels for expungement requests so that we can further consider whether modifications to the filing are appropriate.

Report from FINRA Board of Governors Meeting – May 2021

Board Approves 2020 Annual Financial Report; Adopts Advisory Committee Term Limits in Support of Greater Diversity and Inclusion

WASHINGTON – FINRA’s Board of Governors met on May 18-19, 2021. During the meeting, the Board approved FINRA’s 2020 Annual Financial Report, which—for the first time—will include a section on human capital describing the diversity of the self-regulatory organization’s workforce and Board of Governors. The report will be published this summer.

FINRA Publishes 2021 Industry Snapshot

Statistical Overview of Brokerage Firms, Registered Representatives and Trading Activity

WASHINGTON—FINRA today published the 2021 FINRA Industry Snapshot, its annual statistical report on the brokerage firms, registered representatives and market activity that FINRA regulates.

FINRA Foundation Announces 2021 Research Award Recipients

Studies Advance Understanding of Financial Capability in the United States

WASHINGTON – The FINRA Investor Education Foundation (FINRA Foundation), in partnership with the American Council on Consumer Interests (ACCI), announced today the recipients of its higher-education awards to recognize early-career researchers who are advancing the understanding of consumer financial wellness and the complex relationships among financial literacy, financial capability and financial well-being.

Large Number of Americans Reported Financial Anxiety and Stress Even Before the Pandemic

New study finds lack of financial literacy linked to high levels of stress and anxiety

WASHINGTON (April 28, 2021)—A substantial number of adults in the United States between the ages of 21 and 62 felt anxiety and stress about their personal finances well before the onset of the COVID-19 pandemic, according to a new report published today. Researchers found that financial stress and anxiety are highly linked to low levels of financial literacy, problematic financial behaviors and decreased financial security.