Regulatory Notice 10-05

FINRA Reminds Firms of Their Responsibilities Under FINRA Rule 2330 for Recommended Purchases or Exchanges of Deferred Variable Annuities

Executive Summary

FINRA reminds firms of their responsibilities under the new consolidated FINRA rule on deferred variable annuities. The implementation date of the FINRA rule—as well as previously approved amendments to parts of the rule covering principal review and supervisory procedures—is February 8, 2010. This Notice also addresses issues raised about a firm's ability to hold checks made payable to entities other than itself (third parties) pursuant to interpretive relief that FINRA previously issued.

 

For easy reference, the text of new FINRA Rule 2330 is set forth in Attachment A.

 

Questions regarding this Notice should be directed to:

  • James S. Wrona, Associate Vice President and Associate General Counsel, Office of General Counsel, at (202) 728-8270; or
  • Lawrence N. Kosciulek, Director, Investment Companies Regulation, at (240) 386-4535.