The Securities and Exchange Commission has approved a rule change proposed by the Financial Industry Regulatory Authority (FINRA) to amend the rules about removing members from FINRA's National Adjudicatory Council (NAC). This change aligns the reasons for removing a NAC member with those for removing a governor from the FINRA Board, including removal "for any cause affecting the best interests" judged by the FINRA Board. This is intended to enhance governance and assure fair representation of FINRA members, supporting investor protection and public interest through fair and impartial adjudication processes. The decision emphasizes the importance of the NAC's independence, integrity, and freedom from conflicts of interest.
Simple Explanation
The SEC agreed to a change that lets FINRA remove members from a special group if they're not acting in the group's best interest, like a club kicking out a member who breaks the rules to keep everything fair and safe for everyone.