Regulatory Notice 09-69

FINRA Requests Comment on Proposed Consolidated FINRA Rule Governing Payments to Unregistered Persons; Comment Period Expired: February 1, 2010

Executive Summary

As part of the process to develop a new consolidated rulebook (the Consolidated FINRA Rulebook), FINRA is requesting comment on a proposed FINRA rule regarding payments to unregistered persons. Proposed FINRA Rule 2040 (Payments to Unregistered Persons) would be a new consolidated rule that streamlines the provisions of current:

 

  • NASD Rule 1060(b) (Persons Exempt from Registration); Rule 2410 (Net Prices to Persons Not in Investment Banking or Securities
    Business); Rule 2420 (Dealing with Non-Members); IM-2420-1 (Transactions Between Members and Non-Members); and IM-2420-2 (Continuing Commissions Policy);
  • NYSE Rule 353 (Rebates and Compensation); NYSE Rule Interpretations 345(a)(i)/01 (Compensation to Non-Registered Persons); /02 (Compensation Paid for Advisory Solicitations); and /03 (Compensation to Non-Registered Foreign Persons Acting as Finders); and
  • FINRA Rule 8311 (Effect of a Suspension, Revocation, Cancellation, or Bar).

 

The text of the proposed rule is set forth in Attachment A.

 

Questions concerning this Notice should be directed to Kosha K. Dalal, Associate Vice President and Associate General Counsel, Office of General Counsel, at (202) 728-6903.

View Full Notice PDF 132 KB


The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.


Comments By Date Received
Intercam Securities, Inc. (PDF 54 KB) 1/21/2010
monex Securities (PDF 335 KB) 1/29/2010
Morgan, Lewis & Bockius LLP (PDF 322 KB) 2/1/2010
The LeGaye Law Firm P.C. (PDF 306 KB) 2/1/2010
Sutherland Asbill & Brennan LLP (PDF 77 KB) 2/1/2010
Plexus Consulting LLC (PDF 35 KB) 2/1/2010
NASAA (PDF 29 KB) 2/16/2010