FINRA Proposes Adopting Legacy NASD and Incorporated NYSE Rules into Consolidated Rulebook

FINRA proposed to adopt legacy NASD and Incorporated NYSE Rules and Interpretations into the consolidated FINRA rulebook without any substantive changes. FINRA proposed to adopt:

• the NASD Rule 1010 Series ("Membership Proceedings") into the FINRA Rule 1000 Series;

• NASD Rule 1090 ("Foreign Members") as FINRA Rule 1021;

• NASD Rule 2340 ("Customer Account Statements") as FINRA Rule 2231;

• NASD Rule 2510 ("Discretionary Accounts") as FINRA Rule 3260;

• NASD Rule 3140 ("Approval of Change in Exempt Status under Exchange Act Rule 15c3-3") as FINRA Rule 1020;

• NASD Rule 3150 ("Reporting Requirements for Clearing Firms") as FINRA Rule 4540; and

• NASD Rule IM-3150 ("Exemptive Relief") as Supplementary Material to FINRA Rule 4540.

Additionally, FINRA proposed to:

• adopt the remaining "Incorporated NYSE Rules and Interpretations" in the FINRA Rulebook, without any substantial changes, as a separate Temporary Dual FINRA-NYSE Member Rule Series;

• delete four Incorporated NYSE Rule definitions that are not in the FINRA rule set; and

• update cross-references and make other non-substantive changes within the FINRA rules.

FINRA has filed the proposed rule change for immediate effectiveness.