Regulatory Notice 14-03

Proxy Rate Reimbursement and Enhanced Brokers’ Internet Platforms Amendments to FINRA Rule 2251

Effective Date: January 1, 2014

 

Executive Summary

Effective January 1, 2014, FINRA has amended the provisions of FINRA Rule 2251 regarding rates of reimbursement for expenses incurred in processing and forwarding of proxy and other issuer-related materials. The rule change also establishes a specified success fee for the development of qualified Internet platforms for proxy voting purposes (the Enhanced Brokers’ Internet Platform or EBIP). The rule change conforms to provisions the Securities and Exchange Commission (SEC) has approved and the New York Stock Exchange (NYSE) has already adopted.

 

As discussed further in this Notice, the rule change requires that any FINRA member firm that is not also a member of the NYSE with a qualifying EBIP must provide notice to FINRA.

 

The text of the rule change is available as Attachment A at www.finra.org/notices/14-03. A summary chart that matches the new FINRA rule provisions with the corresponding NYSE rule provisions appears at the end of this Notice.

 

Questions regarding this Notice, other than EBIP notifications, should be directed to Adam H. Arkel, Associate General Counsel, Office of General Counsel, at (202) 728-6961.

 

Firms should direct EBIP notifications, and questions related to such notifications, to their Regulatory Coordinator.