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Proposed Rule Change to Adopt Rules Governing Financial Responsibility in the Consolidated FINRA Rulebook

Financial Industry Regulatory Authority, Inc. (“FINRA”) (f/k/a National Association of Securities Dealers, Inc. (“NASD”)) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to adopt a set of financial responsibility rules for purposes of the consolidated FINRA rulebook. FINRA proposes to adopt FINRA Rules 4110 (Capital Compliance), 4120 (Regulatory Notification and Business Curtailment), 4130 (Regulation of Activities of Section 15C Members Experiencing Financial and/or Operational Difficulties), 4140 (Audit) and 4521 (Notifications, Questionnaires and Reports) in the consolidated FINRA rulebook and to delete NASD Rules 3130 and 3131, NASD IM-3130, Incorporated NYSE Rules 312(h), 313(d), 325, 326, 328, 416.20, 418, 420, 421 and NYSE Rule Interpretations 313(d)/01, 313(d)/02, 325(c)(1), 325(c)(1)/01 and 416/01. FINRA also proposes to revise FINRA Rule 9557 (Procedures for Regulating Activities Under Rules 4110, 4120 and 4130 Regarding a Member Experiencing Financial or Operational Difficulties) and FINRA Rule 9559 (Hearing Procedures for Expedited Proceedings Under the Rule 9550 Series). Lastly, FINRA proposes to make conforming revisions to Section 4(g) of Schedule A to the FINRA By-Laws.

Title Format - Size Status
Text of Proposed Rule Change PDF - 243.61 KB
Approval Order PDF - 79.08 KB
Federal Register Notice PDF - 116.2 KB
Federal Register Notice (Correction) PDF - 52.67 KB
Extension No. 1 PDF - 19.55 KB
Extension No. 2 PDF - 23.58 KB
Extension No. 3 PDF - 19.55 KB
Response to Comments PDF - 554.79 KB
Amendment No. 1 to Proposed Rule Change PDF - 27.56 KB
Amendment No. 2 to Proposed Rule Change PDF - 181.82 KB