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SEC Delays Consideration of Proposed FINRA Research Rules
Practical Law Legal Update 6-601-7505 (Approx. 3 pages)
SEC Delays Consideration of Proposed FINRA Research Rules
by Practical Law Corporate & Securities
| Published on 24 Feb 2015 • USA (National/Federal) |
The SEC issued two orders instituting proceedings to determine whether to approve or disapprove two November 2014 FINRA proposals on research analysts and research reports.
On February 20, 2015, the SEC issued two orders instituting proceedings to determine whether to approve or disapprove two FINRA proposed rule changes issued in November 2014:
- A proposal to, among other things, adopt National Association of Securities Dealers (NASD) Rule 2711 (Research Analysts and Research Reports), with certain modifications, as new FINRA Rule 2241 (see Legal Update, FINRA Proposes to Adopt FINRA Rule 2241 on Research Analysts and Research Reports).
- A proposal to, among other things, adopt new FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) (see Legal Update, FINRA Proposes to Adopt FINRA Rule 2242 on Debt Research Analysts and Debt Research Reports).
The Rule 2241 order and the Rule 2242 order follow receipt of comments on the proposals and seek further comments on each proposal. In particular, the SEC seeks comment on whether the proposals are inconsistent with Section 15A(b)(9) of the Exchange Act (and Section 15D, in the case of the Rule 2241 proposal) or any other provision of the Exchange Act, or the rules and regulations thereunder.
The SEC is accepting comments until March 19, 2015. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by April 2, 2015. The SEC will consider any request for an opportunity to make an oral presentation.
To learn more about the role of research analysts and the rules and regulations governing their activities, see Practice Note, Research Analysts and Research Reports.