FINRA Requests Comment on Improving Capital Formation Framework

FINRA requested comment on potential regulatory measures to support capital-raising and ensure investor protection.

In a Regulatory Notice, FINRA is seeking feedback on:

• any FINRA rules, operations or administrative processes that should be amended to better support capital formation;
• whether current FINRA rules have effectively responded to the capital raising-issues they were intended to address;
• the economic impact of the rules; i.e., which capital raising-related FINRA rules that have (i) been particularly effective, (ii) created unintended consequences or (iii) caused regulatory ambiguity;
• changes in the market since its 2017 request for comment that may require potential regulatory action; and
• any additional data that FINRA could provide to facilitate capital formation or analysis of the regulatory framework.

Comments must be submitted by August 7, 2023.