This section highlights new rules and amendments that FINRA firms may find useful to train employees on as a part of their Firm Element training.
FINRA Adopts Amendments to Rule 3220 (Influencing or Rewarding Employees of Others)
As part of the FINRA Forward initiative, FINRA has adopted amendments to FINRA Rule 3220 (Influencing or Rewarding Employees of Others) to increase the gift limit from $100 to $300 per person per year; incorporate and substantially codify current guidance and interpretations; and provide for exemptive relief. FINRA has also adopted conforming amendments to raise the gift limit to $300 in Rule 2310 (Direct Participation Programs), Rule 2320 (Variable Contracts of an Insurance Company), Rule 2341 (Investment Company Securities) and Rule 5110 (Corporate Financing Rule – Underwriting Terms and Arrangements). These amendments represent a significant step toward modernizing the rules, while codifying existing guidance in a manner that will promote efficiency without reducing protection for investors.
The effective date of the amended rule is March 30, 2026.
Reducing Burdens and Providing Guidance on the Use of Negative Consent for the Bulk Transfer or Assignment of Customers’ Accounts
In furtherance of the FINRA Forward initiative to support member compliance, this Notice reduces unnecessary burdens by eliminating the current practice of submitting draft letters for the use of negative consent to FINRA staff for review and obtaining FINRA staff’s “no objection” prior to sending the letter. In addition, the Notice consolidates guidance FINRA previously issued regarding the use of negative consent and provides members with effective practices to help guide their use of negative consent in future bulk transfers or assignments.
The effective date of the amended rule is March 30, 2026.
Final Rule: Holding Foreign Insiders Accountable Act
The SEC is adopting final amendments to certain of its rules and forms under the Securities Exchange Act of 1934 to reflect the requirements of the Holding Foreign Insiders Accountable Act. The HFIA Act amended Section 16(a) of the Exchange Act to require directors and officers of a foreign private issuer with a class of equity securities registered under Section 12 of the Exchange Act to provide disclosure of their beneficial ownership and transactions involving the issuer’s equity securities.
The effective date for this amended rule is March 18, 2026.
Upcoming Trade Reporting Enhancements for Fractional Share Transactions
FINRA is reminding firms of upcoming updates to its equity trade reporting guidance in connection with enhancements to the FINRA equity trade reporting facilities to support reporting of fractional share quantities. Under the updated guidance, members engaged in fractional share trading will be required to report fractional share quantities up to six digits after the decimal. FINRA is also providing additional guidance for fractional share reporting in circumstances involving fractional amounts smaller than six decimals.
The effective date of the updated trade reporting guidance is February 23, 2026.
FINRA Adopts Amendments to Rule 6730 (Transaction Reporting) to Streamline Allocation Reporting for BD/IAs
FINRA has amended its TRACE reporting requirements to permit a firm that is both a broker dealer and an investment adviser to report allocations of specified orders to managed customer accounts in a streamlined, aggregated manner. These amendments become effective on June 8, 2026. FINRA is not otherwise changing its TRACE reporting requirements.
