SEC Extends Time Period for Action on Proposed FINRA Rule Change to Corporate Financing Rules

The SEC issued a notice to extend the time period for SEC action, on the proposed rule change to amend FINRA's corporate financing rules, to simplify and refine the scope of the rules.

The proposed rule change would amend FINRA Rule 5110("Corporate Financing Rule - Underwriting Terms and Arrangements") and Rule 5121("Public Offerings of Securities with Conflicts of Interest") to narrow the scope of certain definitions, modify the lock-up restrictions to exclude shares owned by an underwriter that are not considered "items of value," and limit certain information requirements to a "participating" (rather than "any") member.

The SEC extended the period in which it must take action to April 28, 2014, when it will either approve, disapprove or institute proceedings to determine whether to disapprove the proposed rule change.

See: Notice of Designation of Longer Period for SEC Action.Related news: FINRA Proposes Rule Change to Simplify and Refine the Scope of Corporate Financing Rules (January 9, 2014).