FINRA Sets Comment Deadline for Proposed Amendments on "Lending and Borrowing" Rule

FINRA set a comment deadline of February 12, 2024 for proposed amendments to FINRA Rule 3240 ("Borrowing From or Lending to Customers"). The comment deadline was published in the Federal Register.

As previously covered, FINRA said the amendments would prevent conflicts of interest and exploitation of customers, particularly senior investors. FINRA said the amendments (i) strengthen the general prohibition against borrowing and lending arrangements with customers, (ii) narrow certain exceptions to those prohibitions and (iii) enhance the notification requirements for approval of such arrangements.