FINRA Imposes Fee Limits on Proxy Distributions
FINRA adopted amendments to a rule on reporting and fee requirements for the delivery by broker-dealers of proxy and other issuer-related materials.
As previously covered, the amendments to FINRA Rule 2251 ("Processing and Forwarding of Proxy and Other Issuer-Related Materials") would:
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allow certain registered investment companies to satisfy their shareholder report delivery obligations by making the reports available electronically on a website using a "notice and access" process;
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limit the maximum fees that its member broker-dealers could charge to issuers utilizing the process; and
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make conforming revisions to match the fee provisions set forth by the New York Stock Exchange.
The amendments are immediately effective and comments must be submitted by January 10, 2022.