Regulatory Notice 14-05

SEC Approves Consolidated FINRA Rules 4314 (Securities Loans and Borrowings), 4330 (Customer Protection – Permissible Use of Customers’ Securities) and 4340 (Callable Securities)

 

Effective Date: May 1, 2014

Deadline for Notification to FINRA of Existing Programs under Rule 4330.06: May 30, 2014

Effective Date for FINRA Rule 4330(b)(2)(B): October 28, 2014

Executive Summary

The SEC approved FINRA’s proposed rule change to adopt additional financial and operational rules for the consolidated FINRA Rulebook (the Consolidated Rulebook). FINRA Rules 4314, 4330 and 4340 are new consolidated rules governing securities loans and borrowings, permissible use of customers’ securities and callable securities. The new rules are based in part on, and replace, provisions of the NYSE and NASD rules and include new provisions.

 

The text of the new rules is available at www.finra.org/notices/14-05.

 

Questions regarding this Notice should be directed to:

  • Kris Dailey, Vice President, Risk Oversight & Operational Regulation (ROOR), at (646) 315-8434 or by email; or
  • Kosha Dalal, Associate Vice President and Associate General Counsel, Office of General Counsel, at (202) 728-6903 or by email.