FINRA Proposes Research Amendments

FINRA proposed eliminating certain requirements applicable to research reports on "covered investment funds," in accordance with the Fair Access to Investment Research Act of 2017 ("FAIR Act"). As previously reported, the SEC adopted a rule pursuant to the FAIR Act to establish a safe harbor to permit an unaffiliated broker-dealer participating in a securities offering of a covered investment fund to publish or distribute a research report on the covered investment fund. For this purpose, a "covered investment fund" includes specified SEC-registered investment companies, business development companies and exchange-traded funds. FINRA proposed related amendments to:

• FINRA Rule 2241 (Research Analysts and Research Reports) to eliminate the "quiet period" restrictions on publishing research reports and making public appearances regarding covered investment funds; and

• FINRA Rule 2210 (Communications with the Public) to establish a filing exclusion for research reports on covered investment funds.

Comments must be submitted within 21 days of publication of the proposed FINRA Rule in the Federal Register.