Update: FINRA Board of Governors Meeting

September 14, 2012


Dear Executive Representative:

 

The FINRA Board of Governors met this week to discuss a number of issues, including rule proposals related to BrokerCheck information, debt research and the research analyst rule. Below is more information on these rulemaking items.

 

I will continue to keep you updated on FINRA activities.

 

Sincerely,
 

Richard Ketchum Signature

Richard G. Ketchum
Chairman and CEO

 


 

Rulemaking Items Discussed at the September 2012 Meeting

 

Investor Use of BrokerCheck Information
The Board authorized staff to file with the SEC proposed amendments to facilitate and increase investor use of BrokerCheck information. Proposed amendments to FINRA Rule 2267 (Investor Education and Protection) would require member firms to include a reference and a link to BrokerCheck on their websites and on certain websites maintained by, or on behalf of, any person associated with a member firm.

Amendments to FINRA Rule 8312 (FINRA BrokerCheck Disclosure) would permanently make publicly available in BrokerCheck information about investment-related civil actions brought against associated persons by a state or foreign regulatory authority that have been dismissed pursuant to a settlement agreement, and would allow for data downloads of BrokerCheck information as approved by the Board.

 

Research Rules
The Board voted to seek further comment via a Regulatory Notice on the debt research conflicts of interest proposal, particularly with respect to revised exemptions for research distributed to institutional investors and for firms with limited investment banking and principal debt trading activities. The Board also approved for filing with the SEC proposed amendments to NASD Rule 2711 (Research Analysts and Research Reports) to make conforming and other changes related to the JOBS Act.