FINRA proposed a rule change with the SEC to modify the structure and governance of District Committees to reflect the regions in which FINRA's districts are administratively grouped and managed by FINRA.
FINRA currently has 11 District Committees, which are responsible for:
- serving as panelists in disciplinary proceedings;
- reviewing and recommending policies and rule changes to the FINRA Board of Governors; and
- presenting the goals, purposes and work of FINRA and FINRA Regulation to FINRA Members and others.
Under the proposed revision, the District Committees would be formally reorganized into Regional Committees that would assume the aforementioned responsibilities of the District Committees.
FINRA further proposed revising candidate and member voting eligibility standards in order to better align the committees with the industry and members within each region. This proposal was issued following a Special Notice requesting feedback on FINRA's member and public engagement programs. Regional Committees would also be required to communicate "high-level information regarding meeting discussions to their constituents."
The proposal was filed for immediate effectiveness with the SEC.
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