Key Takeaways from the 2025 FINRA Annual Conference

The 2025 FINRA Annual Conference, held in Washington, D.C. from May 13–15, brought together industry leaders, regulators, and compliance professionals to discuss the evolving landscape of financial regulation. Anthony Colonna, our ExamFX Director and Chief Editor of Securities, attended the event and shared several important insights. Below is a summary of the most impactful themes and developments. 

1. The FINRA Forward Initiative: A Push Toward Modernization

FINRA is actively reimagining its regulatory framework through the FINRA Forward Initiative, aiming to modernize outdated rules, reduce burdens on member firms, and enhance compliance effectiveness.

Key Focus Areas:

• The Modern Workplace
  FINRA is re-evaluating rules to better support hybrid and remote work environments. This includes potential changes to how branch offices and residential supervisory locations are defined and regulated. Regulatory Notice 25-07 outlines these considerations in detail.

• Capital Formation
  Through Regulatory Notice 25-06, FINRA is seeking input on streamlining the capital-raising process and reducing unnecessary regulatory costs. The goal is to foster innovation while maintaining investor protection.

Importantly, FINRA emphasized that feedback is welcome on any rule, process, or form that could benefit from modernization.

2. Emerging Risks and Regulatory Priorities

FINRA continues to prioritize cybersecurity and fraud prevention, especially in light of evolving threats and technologies.

Highlights:

• Cyber Threats
  Top concerns include ransomware, account takeovers, insider threats, and “quishing” (QR code phishing). The rise of generative AI has introduced new risks, such as deepfakes and synthetic identities.

• Vendor Risk Management
  FINRA expects firms to conduct thorough due diligence on third-party vendors, especially those using AI, and to implement robust data protection controls.

• Market Integrity & Operations
  Topics included:

  • Extended Hours Trading: Emphasis on disclosures and supervisory readiness.
  • Communications Supervision: Addressing off-channel communications and social media influencers.
  • Trade Reporting: Enhancements are coming to support fractional share transaction reporting.
    
    

3. Compliance and Technology: The Role of AI

AI was a major theme throughout the conference, with FINRA both encouraging innovation and stressing the importance of governance.

Key Points:

• AI in Financial Services
  FINRA discussed the transformative potential of generative AI and expects firms to implement pre-use testing, ongoing monitoring, and human oversight of AI tools.

• FINRA’s Use of AI
  The regulator itself is leveraging AI to process vast amounts of data and improve oversight.

• Recordkeeping & Training
  Firms were reminded to maintain detailed documentation and consider automated systems for tracking and archiving. FINRA acknowledged the need for clearer guidance on AI-related recordkeeping requirements. Training staff on cybersecurity, AI risks, and regulatory updates remains essential.

4. A Notable Omission: Crypto Assets

Interestingly, crypto assets were not a major topic at this year’s conference. This may reflect FINRA’s deference to the SEC’s ongoing work through its Crypto Task Force, which is expected to provide further regulatory direction.

Final Thoughts

The 2025 FINRA Annual Conference underscored the regulator’s commitment to modernization, risk management, and technological adaptation. As the financial services industry continues to evolve, so must the frameworks governing it. We’ll be watching closely as these initiatives develop—and we encourage our partners and clients to stay informed and engaged.