FINRA Regulatory Notice 14-03: FINRA Amends Rule 2251 Regarding Proxy Rate Reimbursement and Enhanced Brokers' Internet Platforms

FINRA issued a notice publishing a new tiered rate schedule for processing unit fees, intermediary unit fees, beneficial ownership and non-objecting beneficial owner fees, preference management fees, and notice and access fees regarding FINRA Rule 2251 ("Forwarding of Proxy and Other Issue-Related Materials").

The immediately effective amendments to FINRA Rule 2251 were filed on December 31, 2013, and pertain to rates of reimbursement for expenses incurred in forwarding proxy and other issuer-related material, as well as the establishment of a five-year fee for the development of an enhanced brokers' internet platform for proxy voting purposes, or the Enhanced Brokers' Internet Platform ("EBIP").

Additionally, the new rule states that EBIPs must provide FINRA with notices of upcoming corporate votes, including record and shareholder meeting dates, and access to proxy materials and voting instruction forms. In the notice, FINRA states that any firm which is not also a member of the NYSE with a qualifying EBIP must provide notice to FINRA.

See: FINRA Regulatory Notice 14-03.Related news: FINRA Proposes Amendment to Rule 2251 (January 10, 2014); FINRA-Proposed Rule Change to Amend Rule 2251 (December 31, 2013).