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FINRA Board Agenda: Conflicts of Interest, Transparency of Disciplinary Information
July 6, 2012
[ by Howard Haykin ]
When the FINRA Board of Governors meets next week - 7/12/12 - several key and mundane rulemaking items will be up for authorization and further action by FINRA staff members. Shortly after the meeting, FINRA will email a notice to member firms advising them what actions the Board has authorized - rule adoption, rule filings, or publication of rule proposals for public comment.
Here's this month's Rulemaking Line-Up:
1. Classification of Mediators Under Dispute Resolution By-Laws. FINRA would amend the By-Laws of FINRA Dispute Resolution to ensure that revenue mediators earn while acting as a mediator, and not representing parties in mediation, would not result in their classification as industry members, as defined in the By-Laws. As proposed, mediators, who otherwise would be classified as public, would be permitted to serve as public members of the National Arbitration and Mediation Committee.
2. Debt Research Conflicts of Interest. FINRA would amend the debt research conflicts of interest proposal, incorporating comments submitted in response to Regulatory Notice 12-09.
3. Minor Rules Violation Plan. FINRA proposes to FINRA's Minor Rule Violations Plan to increase the number of eligible rules.
4. Records To Be Kept at Specially Designated Locations. FINRA would adopt a new rule that would require large carrying member firms to maintain and keep current certain records in specially designated locations - and be readily accessible by regulatory staff in the event of the firm's financial difficulty. This is a modification of a proposed rule discussed in Regulatory Notice 11-48; revisions are based upon comments submitted by the public.
5. Release of Disciplinary Complaints, Decisions and Other Information. FINRA would amend FINRA Rule 8313, which governs the release of disciplinary information by FINRA to the public. As proposed, FINRA would adopt general standards for the release of disciplinary information to the public, thereby promoting increased transparency of FINRA's disciplinary process.
6. Reporting Requirements. FINRA would amend FINRA Rule 4530, Reporting Requirements, to eliminate duplicative reporting of information disclosed on the Form U4 and provide firms with the option of filing required documents with FINRA online, among other things.
7. TRACE Factor Reporting. FINRA would amend FINRA Rule 6730 re: the reporting to TRACE the factor used to determine the size (volume) of a transaction in certain asset-backed securities executed as agent.
For further details, go to: [FINRA Board of Governors Announcement to Members, July 2012].

