FINRA Board of Governors
Rulemaking Items for Discussion at the July 2012 Meeting
The FINRA Board of Governors will consider the following rulemaking items at its July 2012 meeting. After the July 12 meeting, FINRA will notify firms via email about the Board's actions on these items and anticipated next steps, if any.
Application of Proposed Markup Rules to Government Securities
The Board will consider a proposed amendment to FINRA Rule 0150 to apply proposed FINRA Rules 2121 and 2122 governing markups and commissions to transactions in government securities (except U.S. Treasury securities).
Classification of Mediators Under Dispute Resolution By-Laws
The Board will consider a proposal to amend the By-Laws of FINRA Dispute Resolution, Inc. (By-Laws) to ensure that revenue mediators earn while acting as a mediator, and not representing parties in mediation, would not result in their classification as industry members, as defined in the By-Laws. The proposal would permit mediators, who otherwise would be classified as public, to serve as public members of the National Arbitration and Mediation Committee.
Debt Research Conflicts of Interest
The Board will consider an amendment to the debt research conflicts of interest proposal based on comments to Regulatory Notice 12-09.
Minor Rules Violation Plan
The Board will consider amending FINRA's Minor Rule Violations Plan to increase the number of eligible rules.
Records To Be Kept at Specially Designated Locations
The Board will consider a proposed new rule that would require large carrying member firms to maintain and keep current certain records in specially designated locations so as to be readily accessible by regulatory staff in the event of the firm's financial difficulty. The proposal is a modified version of the proposed rule discussed in Regulatory Notice 11-48 and makes certain changes in response to comments.
Release of Disciplinary Complaints, Decisions and Other Information
The Board will consider a proposal to amend FINRA Rule 8313, which governs the release of disciplinary information by FINRA to the public. The proposal adopts general standards for the release of disciplinary information to the public, thereby promoting increased transparency of FINRA's disciplinary process.
The Board will consider proposed amendments to FINRA Rule 4530 (Reporting Requirements) to, among other things, eliminate duplicative reporting of information disclosed on the Form U4 and provide firms with the option of filing required documents with FINRA online.
TRACE Factor Reporting
The Board will consider proposed amendments to FINRA Rule 6730 regarding the reporting to TRACE the factor used to determine the size (volume) of a transaction in certain asset-backed securities executed as agent.