Towards a Consolidated Rulebook: FINRA's Proposals Achieve Harmonization, but Raise Questions

Towards a Consolidated Rulebook: FINRA's Proposals Achieve Harmonization, but Raise Questions

Publications

The Financial Industry Regulatory Authority ("FINRA") published on May 14, 2008, four regulatory notices proposing rules for its "Consolidated Rulebook." The proposals address the following areas:

(1) Supervision and supervisory controls;
(2) Financial responsibility;
(3) Books and records requirements; and
(4) Investor education and protection.

FINRA's existing rulebook is called the "Transitional Rulebook" and consists of the NASD rules, which are applicable to all FINRA members, and certain rules incorporated from the New York Stock Exchange ("NYSE") Rulebook, which are applicable to FINRA members that also are NYSE members. The recent proposals would eliminate corresponding rules in the Transitional Rulebook, and the Consolidated Rulebook eventually will replace the Transitional Rulebook in its entirety.

The comment period for each of the proposals ends on June 13, 2008. Separate comment periods will follow FINRA's filing of the rule proposals—in their current or amended form—for approval by the Securities and Exchange Commission ("SEC").

Click here to read more on the significant substantive aspects of the various rule proposals, and their implications for FINRA members.

Contributors