The Financial Industry Regulatory Authority plans to issue a revised proposal on membership requirements after the self-regulator received pushback from the industry during its first attempt.
In 2010, FINRA issued Regulatory Notice 10-01, which quickly generated responses from the industry arguing, among other things, that the changes "were vague, overbroad, and would be unduly burdensome unless FINRA revised the language," says David Bellaire, the Financial Services Institute's (FSI) executive vice president and general counsel.
Bellaire says that while FINRA "did not include many specifics" in its Feb. 14 statement about when or whether it would reissue the proposal, "we're hopeful that FINRA has addressed the issues" FSI raised.
Richard Ketchum, FINRA's CEO, noted in a statement regarding FINRA's Board of Governors' February meeting that the board "authorized FINRA to publish a Regulatory Notice soliciting comment on the proposed consolidated FINRA membership rules." While not providing specifics, FINRA said the revised proposal "includes changes in response to comments on the prior proposal."