FINRA Requests Comment on the Effectiveness and Efficiency of Its Membership Application Rules | Practical Law

FINRA Requests Comment on the Effectiveness and Efficiency of Its Membership Application Rules | Practical Law

FINRA is requesting public comment on the effectiveness and efficiency of its membership application rules as part of a retrospective review of the rules.

FINRA Requests Comment on the Effectiveness and Efficiency of Its Membership Application Rules

by Practical Law Corporate & Securities
Published on 31 Mar 2015 • USA (National/Federal)
FINRA is requesting public comment on the effectiveness and efficiency of its membership application rules as part of a retrospective review of the rules.
On March 30, 2015, FINRA issued a regulatory notice requesting public comment on the effectiveness and efficiency of its membership application rules (MAP Rules). The purpose of the MAP Rules is to allow FINRA to assess, for investor protection purposes, the proposed business activities of broker-dealers that are FINRA members and those that may become FINRA members. FINRA is in the process of conducting a retrospective review of the MAP Rules.
The MAP Rules being reviewed include the following:
  • NASD Rule 1011 (Definitions).
  • NASD IM-1011-1 (Safe Harbor for Business Expansions).
  • NASD Rule 1012 (General Provisions).
  • NASD Rule 1013 (New Member Application and Interview).
  • NASD IM-1013-1 (Membership Waive-In Process for Certain New York Stock Exchange Member Organizations).
  • NASD IM-1013-2 (Membership Waive-In Process for Certain NYSE Alternext US LLC Member Organizations).
  • NASD Rule 1014 (Department Decision).
  • NASD Rule 1015 (Review by National Adjudicatory Council).
  • NASD Rule 1016 (Discretionary Review by FINRA Board).
  • NASD Rule 1017 (Application for Approval of Change in Ownership, Control, or Business Operations).
  • NASD Rule 1019 (Application to Commission for Review).
FINRA is accepting comments on the MAP Rules until May 14, 2015. FINRA will make all comments that it receives available to the public on its website. Upon completion of its assessment of the comments, FINRA staff will report its findings to the Board of Governors and make a general staff recommendation as to whether the rule or rule set should be maintained as is, modified or deleted.
To learn more about the application process for becoming a member of FINRA, see Practice Note, Broker-Dealer Registration: Overview.