FINRA issued a notice informing members that the staff of the Division of Trading and Markets of the Securities and Exchange Commission has issued a no-action letter setting forth conditions under which broker-dealers may treat certain foreign equity securities as having a "ready market" under Exchange Act Rule 15c3-1(c)(11)(i) and subject to the haircuts under Exchange Act Rule 15c3-1(c)(2)(vi)(J) (the no-action letter). This letter also serves to expand the number of foreign securities eligible as foreign margin stock under Regulation T. We had published an item about the no-action letter

SIFMA and the Investment Company Institute ("ICI") have jointly submitted the attached comments to the IRS requesting competent authority assistance under the U.S.-France Tax Convention ("Convention"). Additionally, SIFMA and the ICI have requested an interpretation of the Convention to determine whether the convention provides an exemption from the French Financial Transaction Tax ("FTT") from certain transactions in French stock, or in American Depository Receipts ("ADRs") with underlying French stock, executed in the U.S. Click here to view letter in full (links externally to SIFMA website)

FINRA has filed with the SEC a proposed rule change to amend FINRA Rule 4530 (Reporting Requirements [as to bad events concerning members and their associated persons]). The rule change would: (1) provide an exception from the rule for information disclosed on the Form U4 (Uniform Application for Securities Industry Registration or Transfer); (2) enable members to file required documents with FINRA online; and (3) provide an exception from the rule for findings and actions by FINRA. View text of the proposed rule change (links externally to FINRA website). See also FINRA Rule 4530.

ICI has filed notice that it intends to appeal the adverse decision in its suit against the CFTC, in which it complained that the CFTC had failed to conduct an adequate cost-benefit analysis of the CFTC's planned expansion of Rule 4.5 to apply to mutual funds. Click here to view the notice of appeal.

FINRA announced that it has sanctioned five firms a total of more than $4.48 million for "unfairly obtaining the reimbursement of fees they paid to the California Public Securities Association (Cal PSA)" from the proceeds of municipal and state bond offerings by billing the costs of such membership as an expense of the offering. The firms were fined more than $3.35 million and are required to pay a total of $1.13 million in restitution to certain issuers in California. Click here to view notice in full (links externally to FINRA website).