FINRA Launches Retrospective Rule Review: FINRA Regulatory Notices 14-14 and 14-15

FINRA issued two notices as part of an initiative to conduct retrospective rule reviews on an ongoing basis. FINRA requested comments on the effectiveness and efficiency of its (i) communications with the public rules and (ii) gifts, gratuities and non-cash compensation rules.

According to FINRA, the review process will consist of an assessment of the efficacy and efficiency of the rule or rule set, followed by an action phase to determine whether the findings report recommends modification of the rule or rule set.

In Regulatory Notice 14-14, FINRA identified the communications with the public rule set for review, which includes Rule 2210 ("Communications with the Public"), Rule 2212 ("Use of Investment Companies Rankings in Retail Communications"), Rule 2213 ("Requirements for the Use of Bond Mutual Fund Volatility Ratings"), Rule 2214 ("Requirements for the Use of Investment Analysis Tools"), Rule 2215 ("Communications with the Public Regarding Security Futures") and Rule 2216 ("Communications with the Public about Collateralized Mortgage Obligations").

In Regulatory Notice 14-15, FINRA identified the gifts, gratuities and non-cash compensation rule set as Rule 3220 ("Influencing or Rewarding Employees of Others"), Rule 2310(c) ("Direct Participation Programs"), Rule 2320(g)(4) ("Variable Contracts of an Insurance Company"), Rule 5110(h) ("Corporate Financing Rule - Underwriting Terms and Arrangements") and Rule 2830(l)(5) ("Investment Company Securities").

Comments on the effectiveness and efficiency of both rule sets are due by May 8, 2014.

See: FINRA Press Release; FINRA Reg. Notice 14-14; FINRA Reg. Notice 14-15. See generally: FINRA Rule Calendar (accessible to Cabinet subscribers only).