July 14, 2025

VIA ELECTRONIC SUBMISSION

Jennifer Piorko Mitchell
Office of the Corporate Secretary
FINRA
1700 K Street, NW
Washington, DC 20006

Re: Regulatory Notice 25-07: Supporting Modern Member Workplaces

Dear Ms. Piorko Mitchell,

The Securities Industry and Financial Markets Association (“SIFMA”)¹ submits this letter in response to the Financial Industry Regulatory Authority Inc.’s (“FINRA”) request for public comment on modernizing FINRA rules, guidance and processes for the organization and operation of member workplaces.² We welcome this opportunity to share with FINRA the concerns and recommendations of our members as we all continue to navigate post-pandemic hybrid and remote work environments.

This letter highlights some core areas of concern and suggests possible changes or solutions that SIFMA and its members believe would be beneficial and reflect the leaps the industry has made, notably around remote work and supervision, in response to the COVID-19 pandemic and recent advances in technology. Notwithstanding, our members believe certain areas require more sweeping change while balancing the importance of reaching reasonable outcomes. SIFMA and its members remain ready to deepen the dialogue as FINRA identifies reasonable safeguards and seeks to modernize standards where appropriate.

Executive Summary

This letter, prepared by SIFMA and its members, highlights SIFMA’s recommendations for modernizing FINRA’s rules, guidance, and systems to better reflect today’s remote capabilities and work environments, technological advancements, and evolving investor and firm needs. As detailed herein, SIFMA recommends the following for each of the eight areas in which FINRA requested comment.

• Branch Offices and Hybrid Work: Modernize the outdated office designations based on physical-location given today’s technology-enabled remote work and supervisory capabilities. As part of this effort, SIFMA and its members advocate for the elimination of offices of supervisory jurisdiction (“OSJs”) and expansion of remote work conducted from residential supervisory locations (“RSLs”) and other non-branch locations, as today’s workforce is supervised via centralized, electronic systems, versus in-person oversight. We also ask that FINRA apply a risk-based approach to office designations and inspection requirements.
• Registration Process and Information: Clarify registration rules to limit registration for support staff and limit categories of information made available to the public, including client complaints and Forms U4/U5 disclosures as the harm associated with these disclosures may significantly outweigh any public benefit. This is particularly important in today’s social media environment which has provided customers with numerous outlets to express momentary, and potentially unjustified, grievances that were not intended to be formal, reportable complaints.
• Exams, Continuing Education (“CE”), and Maintaining Qualifications: Grant broader access to exams (e.g., remote testing, fewer restrictions on eligibility to sit for exams) and expand the flexibility of FINRA’s CE program to grant exceptions or credit based on seniority, experience, and participation in other CE Programs. Similarly, promote the Maintaining Qualifications Program (“MQP”) to increase enrollment, eliminate the 5-year limit on the program, and coordinate with the North American Securities Administrators Association (“NASAA”) and states to ensure uniform interpretation of the program.
• Delivery of Information to Customers: Allow default e-delivery with opt-out rights, to align with industry and investor preferences and increase efficiency. Similarly, increase efficiency for firms and investors through the development of principles-based guidance that would allow for the use of negative consent letters to approve account transfers or non-material changes.
• Recordkeeping and Digital Communications: Clarify rules around record retention to clearly define the materials that require preservation—in particular we ask for clarity regarding the directive to preserve communications relating to “business as such.” This is increasingly important in today’s digital age where the proliferation of digital communication channels has exponentiality increased customer communication. Relatedly, modernize FINRA Rule 2210 to allow modern technology to enhance investor communications, e.g., by allowing firms to translate account opening documents, and streamlining electronic disclosures.
• Compensation Arrangements: Allow broker-dealers to pay securities commissions to personal services entities (“PSEs”), and update guidance regarding non-cash compensation and continuing commission programs.
• Fraud Protection: Enhance fraud safeguards to protect vulnerable adults, including through expanded use of Trusted Contacts, an enhanced safe harbor for firms who suspect exploitation and implement account holds, and establishment of platforms where the industry and investors may access information regarding active scams.
• Leveraging FINRA Systems to Support Compliance: Streamline recruiting, onboarding, and termination processes by improving access to candidate data, simplifying Forms U4/U5, and enhancing FinPro, Gateway, and CRD functionality. Increase the functionality of FINRA’s platforms to make its Disciplinary Actions Online and FINRA Rule 4530 systems more user friendly, and to better describe and target requests sent through FINRA Gateway. Coordinate with other regulators and law enforcement to share fingerprint records, while eliminating fingerprint requirements for associated persons in foreign jurisdictions. Finally, clarify the definition of an associated person and provide guidance on the use of third-party offshore vendors.

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1. SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (“GFMA”). [↩]
2. See FINRA Regulatory Notice 25-07. [↩]