Regulatory Notice 08-25

Proposed Consolidated FINRA Rules Governing Books and Records Requirements

Comment Period Expired: June 13, 2008

As part of the process of developing a new, consolidated rulebook (the Consolidated FINRA Rulebook),1 FINRA is requesting comment on proposals relating to the FINRA books and records rules (the proposed rules). Current NASD and Incorporated NYSE Rules2 require member firms to make and preserve certain books and records to evidence compliance with federal securities laws and FINRA and SEC rules, as well as to enable FINRA and SEC staffs to conduct effective examinations. Based in large part on the current rules, the proposed rules would rewrite the FINRA books and records provisions with three goals in view:

  • to streamline the books and records rules to make them as clear as possible;
  • to group books and records requirements along similar subject matter lines to make finding them a more intuitive process and to provide firms with a better understanding of the regulatory scheme; and
  • to eliminate those books and records requirements contained in the current NASD and NYSE Rules that have become obsolete or otherwise duplicative.

The text of the proposed rules is set forth in Attachment A. Questions regarding this Notice should be directed to Afshin Atabaki, Assistant General Counsel, Office of General Counsel (OGC), at (202) 728-8902; or Adam H. Arkel, Assistant General Counsel, OGC, at (202) 728-6961.

1 The current FINRA rulebook consists of two sets of rules: (1) NASD Rules and (2) rules incorporated from NYSE (Incorporated NYSE Rules) (together referred to hereinafter as the Transitional Rulebook). The Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (Dual Members). Dual Members also must comply with NASD Rules. For more information about the rulebook consolidation process, see FINRA Information Notice March 12, 2008 (Rulebook Consolidation Process).

2 For convenience, the Incorporated NYSE Rules are hereinafter referred to as the "NYSE Rules."

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: 
DateCommenterFormat - Size
5/18/2008Jerry HamlinPDF - 29.6 KB
5/29/2008MuniVest Financial GroupPDF - 29.52 KB
6/11/2008SIFMAPDF - 94 KB
6/11/2008Sanderlin Securities LLCPDF - 29.51 KB
6/13/2008ING Advisors NetworkPDF - 1.18 MB
6/13/2008Wachovia Securities LLCPDF - 66.02 KB
6/13/2008Financial Services InstitutePDF - 73.62 KB
6/13/2008Public Investors Arbitration Bar AssociationPDF - 88.5 KB