FINRA filed for immediate effectiveness to adopt FINRA Rule 4160, Verification of Assets, which provides that a member firm, when notified by FINRA, may not continue to custody or retain record ownership of assets - whether such assets are proprietary or customer assets - at a nonmember financial institution that, upon request from FINRA staff, fails promptly to provide FINRA with written verification of assets maintained by the member at such financial institution.  In an earlier rule filing (10-042), FINRA stated it would announce the effective date of the proposed rule change in a Regulatory Notice to be published “no
later than 60 days following Commission approval” and to establish the effective date “no later than 30 days following publication” of the RegNote announcing SEC approval.

The proposed rule change was published for notice and comment;  on 10/1/10, FINRA amended Rule Filing 10-042;  on 10/5/10, the SEC approved the rule filing.   As stated in the Verification of Assets filing, FINRA will publish a Regulatory Notice no later than 60 days following Commission approval of the Verification of Assets filing.  However, in this proposed rule change, FINRA proposes to make the effective date 60 days, rather than “no later than 30 days”, following the publication of the Regulatory Notice announcing Commission approval of the filing.  As noted in Item 2 of this filing, FINRA has filed the proposed rule change for immediate effectiveness and has requested that the SEC waive the requirement that the proposed rule change not become operative for 30 days after the date of the filing, such that FINRA can implement the proposed rule change immediately.  

For further details, click onto:   [ SEC Rule Filing 10-62, 11/18 ]