[ by Howard Haykin ]

The FINRA Board of Governors considered rule proposals when they met earlier this week, pertaining to BrokerCheck information, debt research and the research analyst rule.  Here's the update from Chairman/CEO Rick Ketchum:

1.  Investor Use of BrokerCheck Information.   The Board authorized the staff staff to submit with the SEC the following 2 rule filings:

First, proposed revisions to FINRA Rule 2267, Investor Education and Protection, that would have the intention of facilitating and increasing investor use of BrokerCheck information.  As proposed, members would be required to include a reference and a link to BrokerCheck on their websites and on certain websites maintained by, or on behalf of, any person associated with a member firm.  [C-I Note:  This likely will be filed for immediate effectiveness, though firms will need a period to make necessary technical changes.]

Second, the board authorized the staff to amend FINRA Rule 8312, FINRA BrokerCheck Disclosure, so as to permanently make publicly available in BrokerCheck information about:   investment-related civil actions brought against associated persons by a state or foreign regulatory authority that have been dismissed pursuant to a settlement agreement, and would allow for data downloads of BrokerCheck information as approved by the Board.

 2.  Research Rules.    The Board asks the staff to obtain further comments on the debt research conflicts of interest proposal.  This would be accomplished by issuance of a Regulatory Notice.  The Board is particularly concerned about the following issues:  revised exemptions for research distributed to institutional investors and for firms with limited investment banking and principal debt trading activities.

The Board also approved for filing with the SEC proposed amendments to NASD Rule 2711, Research Analysts and Research Reports, to make conforming and other changes related to the JOBS Act.

[FINRA Communications to Firms, 9/14/12].