Proposed Rule Change to Amend FINRA Rule 4522 (Periodic Security Counts, Verifications and Comparisons) to Simplify Position Statement and Reconciliation Requirements for Certain Alternative Investments

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change that would simplify position statement and reconciliation requirements for certain alternative investments.  Specifically, the proposed rule change would amend FINRA Rule 4522 (Periodic Security Counts, Verifications and Comparisons) to except uncertificated investments in unregistered investment funds from the requirements of paragraph (b)(1) of the rule, as further set forth in the proposed rule change.