2026-08474NoticeWallet

SEC Greenlights Updated FINRA-IEX Plan to Avoid Double Regulation Hassles

Published Date: 5/1/2026

Notice

Summary

The SEC just approved a new plan that updates how FINRA and Investors Exchange (IEX) share the job of watching over their members to avoid double-checking the same folks twice. This change helps cut down on extra work and costs for companies that belong to both groups. The updated plan kicks in right away, making regulation smoother and smarter for everyone involved.

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Less Duplicate Exams for Dual Members

If your firm is a member of both FINRA and IEX (a Dual Member), the SEC-approved Amended Plan shifts many examination and enforcement duties so the same firm is not checked twice. The Commission approved and declared the Amended Plan effective on April 28, 2026, and the Order says this allocation should reduce unnecessary regulatory duplication and lower costs for Dual Members.

FINRA Will Oversee Listed IEX Rules

The Amended Plan lists specific IEX rules (the Certification/Exhibit 1) for which FINRA will assume regulatory and enforcement responsibilities for Dual Members. Under the Order effective April 28, 2026, FINRA will examine and enforce compliance for those IEX rules instead of IEX for firms that are members of both organizations.

Options Rule Added to FINRA Oversight

The Amended Plan adds Securities Exchange Act Rule 14e-4(a)(1)(ii)(D) to the Certification to accommodate IEX's upcoming options facility, and the Plan states FINRA will perform the surveillance responsibilities for that rule. This change is part of the Plan declared effective April 28, 2026.

New Statutory Disqualification Process

Under the Amended Plan, when FINRA becomes aware of a statutory disqualification for a Dual Member or associated person, FINRA will determine acceptability under Sections 15A(g) and/or 6(c) of the Exchange Act, advise IEX of its determination, and IEX must advise FINRA within 30 days whether it concurs. FINRA will update CRD as appropriate.

FINRA Performs Duties at No Fee to IEX

The Amended Plan states there shall be no charge to IEX by FINRA for performing the Regulatory Responsibilities and Enforcement Responsibilities under this Agreement except as otherwise agreed by the parties. That term is part of the Agreement declared effective April 28, 2026.

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Key Dates

Effective Date
Published Date
4/28/2026
5/1/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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