The beginning of 2026 not only brought “Snowcrete” to the Washington D.C. area, but a flurry of regulatory action from FINRA. FINRA issued several notable regulatory updates that, among other changes, seek to modernize the standards concerning communications with the public, account transfers, and even, giving gifts. These are:
Negative Consent Transfers
In Regulatory Notice 26-03, FINRA published updated guidance concerning FINRA Rule 11870 that will permit firms, beginning April 1, to use negative consent for bulk account transfers without seeking FINRA staff’s “no objection”.
Capital Acquisition Brokers
FINRA announced in Regulatory Notice 26-04 that the SEC approved enhancements to the CAB rule framework, expanding permissible activities, broadening the institutional-investor definition, and allowing greater participation in private transactions.
Gifts and Gratuities
FINRA outlined in Regulatory Notice 26-05 that it has increased the gift limit under FINRA Rule 3220 (Influencing or Rewarding Employees of Others)—as well as the related provisions in FINRA Rules 2310 (Direct Participation Programs), 2320 (Variable Contracts of an Insurance Company), 2341 (Investment Company Securities) Rule 5110 (Corporate Financing)— from $100 to $300, modernizing standards while codifying existing guidance in the Rule 3220’s Supplementary Materials.
Performance Projections
FINRA submitted to the SEC amendments to FINRA Rule 2210 that would allow broker-dealers to share projected performance or targeted returns under strict conditions.
E-Delivery Modernization
FINRA’s Board of Governors approved plans to allow broker-dealers to make electronic delivery the default option for investor notices and disclosures, while preserving customer choice and requiring safeguards for delivery failures.
What to Do
Strong supervisory procedures remain essential to an effective compliance program. Broker-dealers should review and update their WSPs as needed—especially as FINRA signals that more modernization is coming.
Because broker-dealers, registered investment advisers and their associates want to spend their time serving their clients, not their regulators.
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