The Financial Industry Regulatory Authority proposed a new rule to authorize it to impose tailored financial obligations on firms with significant prior regulatory issues, as measured by quantifiable thresholds. Generally, FINRA is requesting authority to require a restricted deposit of cash or qualified securities by members with a high level of disclosure events by itself or its employees. FINRA’s proposed rule sets forth how it will compute the quantifiable thresholds and determine the maximum restricted deposit requirement (i.e., based on the nature of the member’s operations and activities, annual revenues, capital, number of offices and salespersons and the nature of the disclosure events). FINRA appears to propose giving itself the right, but not the obligation, to give a member the right to challenge any proposed requirement; however, the member must overcome a presumption that it should pay the maximum restricted deposit amount. FINRA will accept comments on its proposed new rule through July 1, 2019. Currently, the National Futures Association may impose enhanced supervisory requirements on members that employ a high number of associated persons or principals that previously were associated with member firms that have been formally sanctioned or banned for utilizing misleading or deceptive sales practices or promotional literature. (Click hereto access NFA’s Interpretive Notice 9021 regarding Enhanced Supervisory Requirements.)