This 6-page FINRA reference is a general guideline designed to assist firms complete the process when it's involved in an organizational change - e.g., merger, acquisition or succession.  Specifically, FINRA identifies possible FINRA-related steps and questions firms should consider in its interaction with FINRA - although it's not intended to be all-inclusive, as there may also be non-FINRA systems that should be considered. In addition, all steps of the checklist may not be applicable to all firms or all types of organizational changes.  Accordingly, use or adherence to this checklist does not guarantee compliance with regulatory requirements, nor does it create a safe harbor from applicable regulatory responsibilities.  The related categories are:

• District/Membership Considerations  [see this section after the jump]
• Web CRD Considerations
• FINRA User Account Management Considerations
• OATS Considerations
• Other Considerations
• FINRA Contact Summary.

For further details, go to:   [FINRA Checklist for Changes in Firm Organization, last updated May 2011] District/Membership Considerations

□ Have you reviewed Rule 1017? Rule 1017 governs the process for a change in ownership, control, or business operations. FINRA approval is required for a number of different types of changes in firm organization, including certain mergers, acquisitions, asset transfers and material changes in business.  Rule 1017 specifies when and what type of information needs to be submitted to the district to seek approval in advance of the organization change. Rule 1017 can be found at www.finra.org/nasdmanual/rules/r1017/. In addition, FINRA’s Continuing Membership Guide provides additional guidance to firms regarding the approval process. The Guide can be found at www.finra.org/continuingmembership/.

□ Have you contacted your district office? Rule 1017 requires that an application that is required to be filed relating to a change in ownership or control must be submitted at least 30 days before a change is scheduled to occur. If the change involves firms in different districts, each firm should contact its respective district office.

□ Have you determined what the surviving firm(s) will look like after the change in organization? In preparing a Rule 1017 application, you should carefully consider whether the firm, after reorganization, will conform to all of the Rule 1014 standards. The Membership Agreement of the surviving firm(s) should also be reviewed to determine what changes are necessary to ensure accuracy after the change occurs. □ Is the successor firm approved to conduct all of the types of business that the predecessor was conducting? You should ensure that the registered reps are aware what types of business they are allowed to conduct with the new firm. □ Will the change result in a relocation of the firm? If the surviving firm will be located in a different district, that district office should be contacted about the change as well. □ Additional Questions? Contact your district office. A list of district contacts is located at www.finra.org/Industry/Contacts/p085520.