FINRA Amends Rule on Reimbursement Rates for Proxy Materials Distribution

FINRA amended provisions of FINRA Rule 2251 ("Processing and Forwarding of Proxy and Other Issuer-Related Materials") regarding reimbursement rates for expenses in processing and forwarding proxy and other issuer-related materials.

The amendments, which are effective immediately, (i) apply the notice and access fees to investment company shareholder report distributions, and (ii) prohibit fees on accounts that only contain shares that the member transferred for free to the account holder.

This rule change conforms to two amendments the SEC approved on the NYSE's rate reimbursement provisions. The notice and access fees provision under FINRA Rule 2251.01(a)(6) is designed to correspond with NYSE Rule 451.90(5). The prohibition on processing fees provision under FINRA 2251.01(a)(7) is designed to correspond with NYSE Rule 451A.