MFA Submits Comments to SEC Regarding Proposed Amendments to FINRA Rule 5131

The Managed Funds Association ("MFA") submitted comments and declared its support for the proposed amendments to FINRA Rule 5131 ("New Issue Allocations and Distributions") (the rule is intended to prevent, among other things, "spinning"; i.e., directing new issue shares to corporate insiders who can direct investment banking business in return). FINRA has proposed amending certain burdensome procedural elements of compliance with the rule in cases where new issue sales are made to private funds. MFA supported this change and suggested that further changes be adopted to reduce the procedural burdens.

See: MFA Comment Letter; MFA Press Release.Related News: FINRA Files Proposed Rule Change to Amend FINRA Rule 5131 (August 23, 2013).