FINRA Proposes to Amend Reporting Requirements Rule

FINRA filed a proposal with the SEC to amend FINRA Rule 4530. The amendment would provide an exception from the requirements of the rule for dealing with a member or associated person that is subject to statutory disqualification.

According to FINRA, there is "no regulatory value in requiring a firm to report dealings with a disqualified member or associated person that has been approved or is otherwise permitted to be a member or associated with a member." For that reason, FINRA is proposing to exclude activities with a disqualified member or associated person that has been approved (or is otherwise permitted pursuant to FINRA rules and the federal securities laws) to be a member or associated with a member.

See: Proposed Rule Text.