Regulatory Notice 08-16

Member Firm Disclosure and Supervisory Review Obligations; Effective Date: April 7, 2008

Executive Summary

Effective April 7, 2008, an amendment to revise NASD Rule 2711(h)(13) and Incorporated NYSE Rule 472(k)(4) modifies a member’s disclosure and supervisory review obligations when it distributes or makes available third-party research reports.1 The rule change creates a category of “independent third-party research” and eliminates certain supervisory review requirements when a member distributes or makes available such research. The text of the amendment is set forth in Attachment A.

Questions regarding this Notice should be directed to Philip Shaikun, Associate Vice President and Associate General Counsel, Office of General Counsel, at (202) 728-8451; or Erika Lazar, Senior Attorney, Office of General Counsel, at (646) 315-8512.

 


1 See Securities Exchange Act Release No. 57279 (February 6, 2008); 73 FR 8089 (February 12, 2008); Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of Proposed Rule Change as Modified by Amendment No. 1 to Amend NASD Rule 2711 (Research Analysts and Research Reports) and NYSE Rule 472 (Communications With The Public) Regarding a Member’s Disclosure and Supervisory Review Obligations When it Distributes or Makes Available Third-Party Research Reports; File No. SR-FINRA-2007-011.