FINRA Forward: What It Means for Investors

The Financial Industry Regulatory Authority (FINRA) is a not-for-profit self-regulatory organization which protects the integrity of the market and protects investors, specifically for member brokerage firms doing business in the United States.  FINRA creates and enforces rules, educates the public, and registers and trains broker-dealer personnel.

On April 21, 2025, FINRA launched a new initiative entitled “FINRA Forward,” which is aimed at modernizing its regulations, improving member firm compliance, and combatting fraud and cybersecurity risks. The program is intended to improve FINRA’s ability to serve its mission of supporting members, markets, and investors more effectively and efficiently.

FINRA CEO Robert Cook commented on the FINRA Forward initiatives in a recent blog post. “[T]o serve its mission [of] promoting investor protection, market integrity, and vibrant capital markets,” Cook wrote, “FINRA must continuously improve its regulatory policies and programs to make them more effective and efficient. During my time as CEO, we have worked hard to build a culture of continuous improvement across FINRA—and we have come a long way… But continuous improvement means our work is never done, especially since capital markets are constantly evolving and new opportunities to do better are always emerging.”

FINRA Forward Initiatives Aimed to Improve Investor Protection

• Modernizing Regulations

Through Regulatory Notice 25-04, FINRA is broadly soliciting feedback from firms, investors, and other stakeholders regarding which of its rules should be updated or eliminated. FINRA is also requesting information regarding how non-FINRA requirements applicable to members may warrant modernization of FINRA’s rules and regulations. FINRA has extended the comment period for Regulator Notice 25-04 to June 11, 2025.  Relatedly, through Regulatory Notice 25-06 and Regulatory Notice 25-07, FINRA is seeking comment on promoting capital formation and supporting modern firm workplaces.  FINRA hopes these comments will allow it to improve its regulatory approach by modernizing rules, removing unnecessary burdens for members, facilitating innovation and adoption of new technologies, and supporting timely consideration of outside regulatory requirements.

• Enhancing Compliance Support

FINRA will expand and tailor compliance guidance and resources for firms of different sizes and business models, specifically focusing on firms with relatively fewer resources. As part of its efforts to enhance compliance, FINRA will provide more practical tools, including in the form of events and other tools and resources centered around specific challenges.  According to CEO Robert Cook, FINRA is committed “support[ing] effective complinace up front, rather than address[ing] problems after the fact.”

• Combating Emerging Threats Like Cybersecurity and Fraud

Cybersecurity and fraud are some of the most significant concerns for investors, firms, and markets, especially as each day brings progressively sophisticated technology and threats.  To combat these serious risks, FINRA is facilitating information sharing and cooperation across the financial industry.  Thus, in connection with FINRA Forward, FINRA is also launching a Financial Intelligence Fusion Center which will alert member firms of security risks in real time through a secure portal.

Overall, FINRA Forward aims to enhance feedback mechanisms to help firms learn from regulatory exams and oversight efforts. It also intends to streamline data requests, examinations, and the way information is shared. As a whole, FINRA hopes these initiatives will help member firms better serve investors and support fair and strong capital markets.

The FINRA Arbitration Process

In addition to the above, FINRA runs the largest arbitration forum in the United States for resolving disputes between customers and member firms, as well as between brokerage firm employees and their employers.  In fact, the FINRA arbitration process is often the preferred (and sometimes mandatory) forum for resolving FINRA disputes.  FINRA acts as the impartial provider of the arbitration forum, while an arbitrator plays the evaluative role.

The process involves several stages, beginning with the claimant’s filing of a statement of claim setting forth a description of the dispute and the amount at issue and a submission agreement naming the parties and confirming they will abide by the arbitrator’s decisions.  The respondent has 45 days to submit an answer. The parties then select arbitrators from FINRA’s list of neutrals, followed by a prehearing conference, discovery, and then a hearing. After the hearing, the arbitrators deliberate and may deliver an arbitration award.

Navigating Securities Disputes and Arbitration Proceedings with Miller Shah

Miller Shah is experienced in securities litigation and regulation, including representing individual and institutional investors in FINRA arbitration proceedings. Our FINRA arbitration lawyers believe FINRA arbitrations can effectively and efficiently remedy investor losses or other harm for clients nationwide. Our extensive familiarity with the FINRA arbitration process drives our history of favorable resolutions in securities dispute resolution.  The Miller Shah team has expertise regarding:

• Excessive trading (fee “churning”)
• Financial fraud against elderly or disabled persons
• Imprudent or unauthorized investment strategies
• Misrepresentation or material omissions regarding securities
• Over-concentration in individual securities or investment products
• Switching practices between mutual funds or variable annuity contracts against client interests
• Unauthorized or imprudent changes in portfolio composition

Miller Shah also represents investment professionals in “on-the-record” interviews and disciplinary proceedings.  If you believe you were defrauded in your investments, contact Miller Shah online or call 866-540-5505 for a free introductory consultation.