Regulatory Notice 08-23 - View Comments

Proposed Consolidated FINRA Rules Governing Financial Responsibility

Comment Period Expired: June 13, 2008

As part of the process to develop a new consolidated rulebook (the Consolidated FINRA Rulebook),1 FINRA is requesting comment on a proposed set of financial responsibility rules (the proposed rules). Proposed FINRA Rules 4110, 4120, 4130, 4140 and 4521 would be new, consolidated rules based in part on existing NASD and Incorporated NYSE Rules2 and would govern members' financial responsibility requirements. Proposed FINRA Rules 9557 and 9559 would revise NASD Rules 9557 and 9559, respectively, and would afford members served with a notice under the financial responsibility rules an expedited appeal process. (In addition, FINRA would make conforming revisions to Section 4(g) of Schedule A to the FINRA By-Laws.)

The text of the proposed rules is set forth in Attachment A. The chart in Attachment B summarizes the applicability of the proposed rules to member firms.

Questions regarding this Notice should be directed to:

  • Kris Dailey, Vice President, Risk Oversight & Operational Regulation, at (646) 315-8434;
  • Susan M. DeMando, Associate Vice President, Financial Operations Policy, at (202) 728-8411; or
  • Adam H. Arkel, Assistant General Counsel, Office of General Counsel, 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). 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).

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
5/28/2008Colonnade Securities LLCPDF - 30.08 KB
5/29/2008Thornburg Securities Corp.PDF - 32.26 KB
6/4/2008Karen FischerPDF - 28.92 KB
6/6/2008George K. Baum & Co.PDF - 90.75 KB
5/15/2008First Asset Financial Inc.PDF - 35.17 KB
6/11/2008Federated Investors, Inc.PDF - 116.27 KB
6/12/2008Alan LevinPDF - 29.23 KB
6/12/2008TBT Securities, L.C.PDF - 38.78 KB
6/13/2008ING Advisors NetworkPDF - 3.96 MB
6/13/2008Stephen KinkadePDF - 39.51 KB
6/13/2008Stephen KinkadePDF - 39.74 KB
6/13/2008Stephen KinkadePDF - 35.32 KB
6/13/2008SIFMAPDF - 31.48 KB
6/13/2008Wachovia Securities LLCPDF - 66.02 KB
6/13/2008Financial Services InstitutePDF - 73.62 KB
6/13/2008SutherlandPDF - 91.52 KB
6/13/2008Capstone Partners LPPDF - 34.13 KB
6/13/2008Northwestern Mutual Investment Services, LLCPDF - 61.56 KB
6/25/2008Cantella & Co., Inc.PDF - 82.06 KB