SEC approves new FINRA rules governing communications with the public

Abstract

Purpose

The paper aims to explain the new Financial Industry Regulatory Authority (FINRA) rules governing communications with the public approved by the Securities and Exchange Commission (SEC) on March 29, 2012.

Design/methodology/approach

The following are explained: categories of communication, pre‐use approval and record‐keeping requirements, filing requirements, content standards, use of investment company rankings in retail communications, requirements for the use of bond mutual fund volatility ratings, requirements for the use of investment analysis tools, communication with the public regarding securities futures, communication with the public about collateralized mortgage obligations, and the implementation date for the rules.

Findings

While the new FINRA rules are based on the current provisions of the NASD Rules and Interpretive Materials they replace, there are some notable changes with regard to the communication categories, public appearances, and the approval, review and recordkeeping requirements.

Originality/value

Practical guidance is provided from experienced securities lawyers.

Citation

Kelly, J.P. and Curzon, E.R. (2012), "SEC approves new FINRA rules governing communications with the public", Journal of Investment Compliance, Vol. 13 No. 3, pp. 63-68. https://doi.org/10.1108/15285811211266146