In an era of rapid technological change and evolving workplace practices, FINRA is taking steps to modernize its regulatory framework through a sweeping initiative known as FINRA Forward. This initiative was a central topic of discussion at the 2025 FINRA Annual Conference, where FINRA leadership emphasized the importance of updating rules to better align with today’s market realities. The self-regulatory organization is now inviting public feedback—extending its consultation period—to better understand which rules may be outdated, overly burdensome, or no longer aligned with the realities of today’s capital markets.

The initiative aims to create a more adaptive, efficient, and innovation-friendly regulatory environment. As FINRA CEO Robert Cook explained in a recent blog post, modernizing the rulebook will help firms “operate, compete, and innovate on a level playing field,” while also improving their ability to manage risk and serve clients effectively.

Key Areas of Focus

FINRA is especially seeking input on rules related to:

  • Digital Communications and Recordkeeping: Revisiting rules around how firms use and supervise modern communication tools like texting, chat apps, and collaboration platforms.
  • Modern Workplace Practices: Revisiting standards in light of widespread remote work, hybrid operations, and digital communications.
  • Outside Business Activities (OBA): Proposing to consolidate and simplify existing rules (Rules 3270 and 3280) into a single, streamlined rule to reduce unnecessary burdens while maintaining investor protections.

The initiative is also encouraging feedback on how FINRA’s rules interact with other non-FINRA requirements, such as SEC rules or state-level regulations, and how those overlaps may be creating friction or inefficiencies for firms.

What This Means for Compliance Professionals

While the goal is long-term improvement, the near-term impact for compliance teams could be significant. Rule updates—even those designed to reduce burdens—often require realignment of internal procedures, training programs, supervisory systems, and technology platforms. As such, compliance leaders should begin considering the following:

  • Engage in the Feedback Process: Now is the time to speak up. Firms can submit comments to FINRA’s open regulatory notices to help shape the direction of future rule changes.
  • Monitor for Changes: Stay informed about upcoming modifications to FINRA rules and assess how updates may affect your firm’s supervisory structure or workflows.
  • Prepare for Adjustments: Begin internal conversations about how your firm might adapt to greater flexibility in areas like remote supervision, electronic recordkeeping, or communication standards.
  • Align with Innovation Goals: A modernized rulebook may create space for operational efficiency and client engagement strategies that were previously hindered by outdated rules.

Opportunity in Change

FINRA Forward represents more than just a compliance refresh, it’s an opportunity for firms to help shape a regulatory framework that reflects today’s market realities. For compliance professionals, this is the moment to engage, anticipate change, and ensure that evolving standards are implemented in ways that support both innovation and investor protection.