FINRA considers whether a rule still serves its intended purpose, reflects how firms operate today, and imposes costs that could be reduced without compromising investor protection. In March 2025, FINRA launched a broad rulebook review through Regulatory Notice 25-04, asking member firms, investors, and other stakeholders to identify requirements worth reconsidering. Capital formation and the modern workplace were initial priorities. The review later became part of FINRA Forward, an initiative focused on modernizing regulation as financial markets and business practices evolve. ARMA helps firms track when new rules take effect, identify procedures that need updating, and document the work completed.
Industry feedback plays an important role in deciding what gets changed. Firms can identify specific regulatory burdens, provide evidence of their impact, and explain how alternative approaches could address those problems without weakening investor protection. FINRA evaluates those comments, develops proposed amendments, and submits rule changes to the SEC for review where required. Several changes have already emerged from FINRA Forward. The annual Gifts Rule limit increased from $100 to $300 in March 2026, while separate amendments expanded certain permitted activities for Capital Acquisition Brokers. In September, the SEC approved Rule 3290, which will replace Rules 3270 and 3280 when it takes effect on October 25, 2027. The new rule narrows reporting requirements for outside activities, allowing firms to focus more attention on investment-related risks.
Broker-dealers can participate in this process by submitting comments supported by operational experience and following proposals as they move through regulatory review. Once a change is approved, firms need to determine whether it affects their business, when it takes effect, and which procedures, controls, or systems need updating. Maintaining clear records of regulatory changes and their implementation helps compliance teams prepare for new requirements and demonstrate how their firms responded.
