“FINRA and MSRB Submit Pay-to-Play Rules to SEC for Approval”

“FINRA and MSRB Submit Pay-to-Play Rules to SEC for Approval”

“FINRA and MSRB Submit Pay-to-Play Rules to SEC for Approval”

On December 16, 2015, the loan industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB) posted their particular pay-to-play rules towards the Registration (SEC) for approval. FINRA Suggested Rule 2030 sets forth pay-to-play limitations on broker-dealers that behave as placement agents for investment advisors or their managed funds, as the suggested amendments to MSRB Rule G-37 achieve this for registered municipal advisors. Please be aware that this draft of FINRA’s Suggested Rule includes significant changes in the prior draft, such as the removal of a draconian disclosure requirement.

Effective Date: When the SEC approves these rules, they will probably work within the other half of 2016 or perhaps in 2017. Within two several weeks of SEC approval, FINRA and also the MSRB will issue releases creating the effective date for his or her particular rules. FINRA and also the MSRB sets the effective date for his or her rules between six several weeks and something year following the dates of these releases.

Effect on Investment Advisor Rule Restricting Placement Agents: The FINRA and MSRB Rules would be the final bits of the regulatory regime to apply the SEC Rule 206(4)-5 limitations on investment advisers’ capability to use affiliates or organizations as placement agents. Once both of the aforementioned rules work well, the SEC will start enforcing the Rule 206(4)-5 placement agent limitations. Pursuant towards the relation to an FAQ from the SEC on June 25, 2015, the SEC staff won’t recommend enforcement of Rule 206(4)-5’s placement agent provision before the later from the effective dates from the FINRA pay-to-play rule and also the MSRB Rule G-37 amendments.

Information on FINRA and MSRB Rules Is Going To Be Forthcoming: We’re reviewing the written text of both releases and can provide research into the suggested rules inside a future mailing.

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Johnnie

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Comment ( 1 )
  1. SuperbJir
    October 28, 2016 at 3:32 am
    Reply

    I was really looking forward to this game as my fi1t entry into the genre but its a shame it got canceled.

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