Who is FINRA’s Board of Governors?

By Alisa Radut, Fall 2017 IAC Student Intern

FINRA’s Board of Governors is the governing body of FINRA.  It oversees how FINRA’s activities and affairs are managed and administrated.  The Board is made up of a combination of 10 members of the industry, 13 public members, and FINRA’s Chief Executive Officer.

Of the industry member seats are for firm governors, the number of each is based on proportion to the size of the firm.  The Board’s Nominating & Governance Committee nominates candidates for the Board of Governors for seven of the 24 elected governor sears.  The remaining seats are filled with appointments by the Board of Governors from a list of candidates provided by the Nominating & Governance Committee.  Governors are appointed for 3-year terms, and can serve up to a maximum of 2 terms.  The Board convenes for regular meetings five times a year.

In addition, the Board provides Communications to Firms, comprised of videos or letters, advising on a number of issues, including cybersecurity deficiencies, formalizing oversight of a firm’s cyber program, insider trading red flags, and many others, which FINRA posts on its website.  During the meetings, the Board discusses rule proposals, committee news, and when rulemaking items are considered it will send communication to firms about the Board’s anticipated actions and next steps.  The summaries of the meetings can also be found on the FINRA website.  Communications to firms is an important aspect of what the Board does in order to ensure firms have the tools and resources necessary to comply with FINRA’s rules and regulations.