FINRA proposes to adopt new FINRA Rule 3230, Telemarketing, that in large part would be based on NASD Rule 2212.  Certain elements of NYSE Rule 440A and Interpretation 440A/01.  The proposed rule change also would adopt provisions that are substantially similar to the telemarketing rules of the FTC. Background Information. NASD Rule 2212 and NYSE Rule 440A are similar rules that require members to maintain do-not-call lists, limit the hours of telephone solicitations and prohibit members from using deceptive and abusive acts and practices in connection with telemarketing. The Commission directed FINRA and NYSE to enact these telemarketing rules in accordance with the Telemarketing Consumer Fraud and Abuse Prevention Act of 1994 ("Prevention Act").  The Prevention Act requires the Commission to promulgate, or direct any national securities exchange or registered securities association to promulgate, rules substantially similar to the FTC rules to prohibit deceptive and other abusive telemarketing acts or practices. Proposed New FINRA Rule 3230. First, the proposed rule change would adopt into new FINRA Rule 3230 similar caller identification ("ID") information provisions contained in NYSE Rule 440A(h).  These provisions provide that members engaging in telemarketing must transmit caller ID information and are explicitly prohibited from blocking caller ID information.  The telephone number provided must permit any person to make a do-not-call request during normal business hours.

Inclusion of these caller ID information provisions in the proposed rule will not create any new obligations on B/D's as they are already subject to identical provisions under FCC regulations.

The proposed rule change would not incorporate the additional provisions in NYSE Rule 440A regarding prerecorded messages and the use of telephone facsimile or computer advertisements.  Similar provisions were never adopted by the FTC under the Prevention Act and thus are not required to be part of SEC or SRO rules.  Moreover, these provisions in the NYSE rule are duplicative of similar FCC regulations that are applicable to B/D's. Second, the proposed rule change would adopt a provision that is similar to NYSE Rule Interpretation 440A/01 as Supplementary Material. The provision reminds firms that the rule does not affect the obligation of any member or person associated with a member that engages in telemarketing to comply with relevant state and federal laws and rules, including the rules of the FCC relating to telemarketing practices and the rights of telephone consumers.  The proposed rule change would not incorporate the remainder of NYSE Rule Interpretation 440A/01 because the requirement for a member to make and maintain a list of persons who do not want to receive telephone solicitations is duplicative of an existing provision in the NASD rule. Third, the proposed rule change, as directed by the Commission staff, makes amendments and adopts provisions that are substantially similar to FTC rules that prohibit deceptive and other abusive telemarketing acts or practices as described below. For further details, go to:  [FINRA Rule Filing 11-59, 10/13/11].