Revised FINRA Rules Regarding Communications with the Public Adopted
April 04, 2012
BY THE INVESTMENT MANAGEMENT PRACTICE
The U.S. Securities and Exchange Commission has approved a significant revamping of the Financial Industry Regulatory Authoritys (FINRA) current rules regarding communications with the public (the FINRA Communications Rules). These rule changes complete a multi-year effort by FINRA to reorganize and simplify its Communications Rules and to incorporate into those Rules much of its Interpretive Materials under former NASD Rules 2210 and 2211. The revised FINRA Communications Rules also include some substantive changes, particularly regarding such items as the definition of correspondence, the Rules application to closed-end funds, and the manner in which illustrations regarding tax-free compounding are presented. The final FINRA Communications Rules also address a number of industry concerns regarding the treatment of internal communications and the use of social media.