FINRA Rule 4311(h)(2)
FINRA Rule 4311(h)(2) replaced NASD Rule 3230(c)(3) in August, 2011. Rule 4311(h)(2) requires that each year, by no later than July 1, each clearing/carrying member firm notify in writing the introducing/correspondent member firm's chief executive and compliance officers of the reports offered to the introducing member firm pursuant to 4311(h)(1) and the reports requested by or supplied to the introducing member firm as of such date. Rule 4311(h)(2) also requires the clearing member firm to provide to the introducing member firm’s DEA a copy of both the notice of available reports and the list of reports requested by or supplied to the introducing member firm. The same process is required by NYSE Rule 382. Submission in electronic format, such as Adobe PDF, is requested.
In light of the annual July 1 compliance deadline, FINRA Member Regulation Department has a centralized 4311(h)(2) notification submission process. Clearing member firms may submit to FINRA the required notifications and list of reports requested by or supplied to the introducing member firm as of such date in any one of these two ways in compliance with the rule:
- Sending an email to email@example.com with electronic scanned copies attached, in a format such as Adobe PDF, for files of 10 megabytes or less in size; or
- Sending data CDs containing Adobe PDF electronic files (the best medium for large submissions of more than 10 megabytes in size), via US Mail or overnight service to the following street address:
FINRA Member Regulation
Regulatory Programs, 6th Floor
1735 K Street, NW
Washington, DC 20006
Attention: 4311(h)(2) Notifications Review/John Barron
For questions regarding submissions required by FINRA Rule 4311(h)(2), please contact John Barron at (202) 728-8221. For technology related questions, please contact the FINRA Call Center at (800) 321-6273, and follow the prompts to obtain technical assistance.