FINRA eyes enhancements to digital asset sale disclosures


NEW YORK (Reuters) – The Financial Industry Regulatory Authority plans to take a look at enhancing the disclosure regime for dealer sellers that promote digital property, and may additionally replace its guidelines round how choices accounts are opened, the pinnacle of Wall Street’s self-regulatory physique mentioned on Wednesday.

FINRA could put out an “early stage idea launch” geared toward making certain buyers know that after they purchase digital property from their brokers, these property is probably not regulated, Chief Executive Officer Robert Cook mentioned throughout a webcast hosted by the Securities Industry and Financial Markets Association.

“There are disclosure guidelines that apply as we speak and we would like to give alternatives to speak about these and in addition to ensure that, to see, if there are further enhanced necessities that ought to apply,” Cook mentioned on the webcast, which was targeted on FINRA’s 2022 priorities.

The regulator can also be contemplating whether or not to replace the foundations round choices account openings, he mentioned.

FINRA’s present guidelines round choices have been adopted a long time in the past and at the moment buyers wanting to open an choices account had to undergo a registered consultant who would determine whether or not it was applicable for the shopper to commerce choices primarily based on previous expertise and buying and selling exercise, he mentioned.

But since then, technological improvements have made choices accounts extra accessible to buyers and among the previous guidelines don’t replicate that, he mentioned.

“This can be a query about whether or not these rule units want to be tuned up in mild of the modifications in expertise,” Cook mentioned.

(Reporting by John McCrank in New York; Editing by Matthew Lewis)

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