Continuing Application of NASD Rules and Incorporated NYSE Rules
Following the consolidation of NASD and the member regulation, enforcement and arbitration functions of NYSE Regulation into FINRA, FINRA established a process to develop a new consolidated rulebook (Consolidated FINRA Rulebook), which FINRA has discussed in previous Information Notices.1 FINRA recently announced that the first phase of new consolidated FINRA Rules,2 approved by the SEC in August and September 2008, will take effect on December 15, 2008.3
FINRA is issuing this Notice to remind member firms of their compliance obligations with respect to NASD and Incorporated NYSE Rules (together, referred to as the Transitional Rulebook) for so long as such rules are in effect, irrespective of whether the rules' requirements are changed or eliminated at a future date. Conduct that was subject to any rule in the Transitional Rulebook at the time such rule was in effect remains subject to that rule for the purpose of regulatory examinations and disciplinary/enforcement proceedings.
Questions regarding this Notice should be directed to Patrice Gliniecki, Deputy General Counsel, Office of General Counsel (OGC), at (202) 728-8071; or Adam H. Arkel, Assistant General Counsel, OGC, at (202) 728-6961.
1 See Information Notice 10/06/08 (Effective Dates of New Consolidated Rules; Introduction of Rule Conversion Chart); see also Information Notice 03/12/08 (Rulebook Consolidation Process).
2 The current FINRA rulebook includes, in addition to FINRA Rules, (1) NASD Rules and (2) rules incorporated from NYSE (Incorporated NYSE Rules). While the NASD Rules generally apply to all FINRA member firms, the Incorporated NYSE Rules apply only to those member firms of FINRA that are also member firms of the NYSE (Dual Members). The new FINRA Rules will apply to all member firms, unless such rules have a more limited application by their terms.
3 See Regulatory Notice 08-57 (October 2008) (SEC Approves New Consolidated FINRA Rules).