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During a recent Financial Services Institute (FSI) conference, SEC Commissioner Hester Peirce and FINRA CEO Robert Cook emphasized the crucial importance of collaboration and partnership between their respective organizations.
Their remarks highlighted the shared goal of fostering full participation by Americans in capital markets and ensuring a robust and effective regulatory framework. Both regulators acknowledged the increasing complexity of today’s markets and the need for a regulatory structure that incorporates industry perspectives.
Robert Cook, in particular, discussed FINRA’s “FINRA Forward” initiatives, which aim to continuously improve and adapt to the evolving industry landscape. Key priorities he mentioned included modernizing rules, empowering member-firm compliance, and assisting with cyber and fraud risks. He stressed that FINRA seeks to avoid imposing unnecessary burdens while maintaining effective oversight.
Commissioner Peirce underscored the need for balance in regulation, asserting that the SEC should add value rather than create more problems. She suggested that the SEC should consider whether private markets can solve issues before introducing new regulations and highlighted the essential nature of partnerships between the SEC and self-regulatory organizations (SROs) like FINRA. She also noted the importance of a healthy balance among federal, state, and SRO regulators.
The discussion also touched on the relationship between FINRA and the SEC’s recently appointed Chair Paul Atkins, with Cook expressing excitement about some of Atkins’ priorities, including modernizing and tailoring rules and promoting innovation. Peirce acknowledged that the SEC might have offloaded too much responsibility to FINRA in certain areas, stressing the SEC’s need to “keep a pulse on the markets” regarding data, short selling, and other regulatory intricacies.

Video courtesy of CSOB

Video courtesy of CSOB