FINRA Regulatory Notice : Payments to Unregistered Persons

Download: FINRA_-_Payments_to_Unregistered_Persons.pdf

As part of the process to develop a new consolidated rulebook (the Consolidated FINRA Rulebook),1 FINRA is requesting comment on a proposed FINRA rule regarding payments to unregistered persons. Proposed FINRA Rule 2040 (Payments to Unregistered Persons) would be a new consolidated rule that streamlines the provisions of current:

  • NASD Rule 1060(b) (Persons Exempt fromRegistration); Rule 2410 (Net Prices to Persons Not in Investment Banking or Securities Business); Rule 2420 (Dealing with Non-Members); IM-2420-1 (Transactions BetweenMembers and Non-Members); and IM-2420-2 (Continuing Commissions Policy);

  • NYSE Rule 353 (Rebates and Compensation); NYSE Rule Interpretations 345(a)(i)/01 (Compensation to Non-Registered Persons); /02 (Compensation Paid for Advisory Solicitations); and /03 (Compensation to Non-Registered Foreign Persons Acting as Finders);

More articles on Securities Alerts and Issues can be found in our Securities Alerts: SEC & FINRA Section

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FINRA Regulatory Notice : Payments to Unregistered Persons

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