FINRA Proposes to Adopt FINRA Rule 2040 ("Payments to Unregistered Persons") and Amend Rule 8311 ("Effect of a Suspension")

FINRA filed a proposed rule change with the SEC to adopt FINRA Rule 2040 and amend FINRA Rule 8311.

FINRA proposed to adopt FINRA Rule 2040 regarding members' payment of transaction-based compensation to unregistered persons, which incorporates NASD Rule 1060 and streamlines the provisions of NASD Rules 2410 and 2420 and NYSE Rules 353 and 345.

In addition, FINRA proposed to amend Rule 8311 in order to eliminate duplicative provisions of NASD IM-2420-2, and to adopt the requirements of NASD IM-2420-1(a) as FINRA Rule 0190.

See: Text of Proposed Rule Change.