FINRA Announces Effective Date of SEC-Approved Rules Regarding Payments to Unregistered Persons (FINRA Reg. Notice 15-07)

FINRA issued a regulatory notice regarding the SEC's approval of consolidated FINRA Rules 2040 and 0190, which relate to payments to unregistered persons, as well as amendments to Rule 8311.

FINRA Rule 2040 governs the payment of transaction-based compensation by member firms to unregistered persons, and FINRA Rule 0190 establishes a new general standard that specifies when a member firm will be treated as a nonmember of FINRA. The amendments to FINRA Rule 8311 clarify the scope of the rule on payments by member firms to persons subject to suspension, revocation, cancellation, bar or other disqualification.

The rules and amendments will become effective on August 24, 2015.

See: FINRA Reg. Notice 15-07.Related news: SEC Approves FINRA's Proposal to Adopt Rules 0190 and 2040 and Amend Rule 8311 (December 31, 2014); FINRA Proposes Rule Change to Adopt Rules 0190 and 2040 and Amend Rule 8311 (Fed. Reg.) (October 1, 2014); FINRA Proposes to Adopt FINRA Rule 2040 ("Payments to Unregistered Persons") and Amend Rule 8311 ("Effect of a Suspension") (September 10, 2014).