Overview

The long path to a new FINRA rule governing communications with the public moved closer to completion on 31 Oct 2011, when FINRA filed with the SEC a response to public comments it had received on the proposal it filed on 14 July 2011, and an amended proposed version of the rule. The SEC could have approved the rule as amended, but instead it called for additional public comment and took the highly unusual step of instituting proceedings to determine whether to approve the rule.

One of the significant changes introduced in the July 2011 version of the proposed rule is the addition of Supplementary Material 2210.01, which states that "a member's internal written (including electronic) communications that are intended to educate or train registered persons about the products or services offered by a member" are "institutional communications."

This briefing describes how the above changes will affect member firms; FINRA's revisions to the proposed rule; and the next steps for FINRA, the SEC and the public consultation.

Click 'View Briefing' to read on.