Regulatory Notice 09-03

FINRA Requests Comment on Proposed Consolidated FINRA Rules Governing Financial Responsibility and Operational Requirements; Comment Period Expired: February 20, 2009

Executive Summary

In its continued effort to develop a set of financial responsibility and related operational rules1 for the consolidated rulebook (the Consolidated FINRA Rulebook),2 FINRA is requesting comment on proposed new FINRA Rules 4150, 4311, 4522 and 4523 (the proposed rules). The proposed rules are based in part on Incorporated NYSE3 and NASD Rules and would, in combination with the proposed rules FINRA recently filed with the SEC,4 govern financial responsibility as well as certain operational and contractual requirements of member firms.5

1 See SR-FINRA-2008-067 (Proposed Rule Change to Adopt Rules Governing Financial Responsibility in the Consolidated FINRA Rulebook) (filed on December 29, 2008).

2 The current FINRA rulebook consists of: (1) FINRA Rules; (2) NASD Rules; and (3) rules incorporated from NYSE (Incorporated NYSE Rules) (together, the NASD Rules and Incorporated NYSE Rules are referred to as the Transitional Rulebook).While the NASD Rules generally apply to all FINRA member firms, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (Dual Members). The FINRA Rules apply to all FINRA member firms, unless such rules have amore limited application by their terms. For more information about the rulebook consolidation process, see Information Notice 03/12/08 (Rulebook Consolidation Process).

3 For convenience, the Incorporated NYSE Rules are referred to as the NYSE Rules.

4 See supra note 1.

5 The proposed rules would replace NYSE Rules 322 (Guarantees by, or Flow Through Benefits for Members or Member Organizations), 382 (Carrying Agreements) (including Rule 382's related Interpretations), 440.10 (Periodic Securities Counts, Verifications, Comparisons, etc.) and 440.20 (Identification of Suspense Accounts and Assignment of Responsibility for General Ledger Accounts) and NASD Rule 3230 (Clearing Agreements).

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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.


Comments By Date Received
Wedge Securities, LLC (PDF 66 KB) 2/19/2009
T. Rowe Price Investment Services, Inc. (PDF 82 KB) 2/20/2009
Sutherland (PDF 748 KB) 2/24/2009
Pershing (PDF 247 KB) 4/27/2009