SEC Institutes Proceedings on FINRA Proposal to Adopt Rule Regarding Research Analysts and Reports (Fed. Reg.)

An SEC order instituting proceedings to determine whether to approve or disapprove FINRA's proposal to adopt Rule 2241 was published in the Federal Register.

The proposal would incorporate, with modifications, NASD Rule 2711 ("Research Analysts and Research Reports") into the FINRA Rulebook as new FINRA Rule 2241 and amend NASD Rule 1050 ("Registration of Research Analysts") to create an exception from the research analyst qualification requirement.

The SEC received four comments on the proposal since its filing, with three out of the four expressing general support. One commenter objected to the general formulation of the proposal as a principles-based rule.

The SEC requested that additional comments be submitted by March 19, 2015. Any person who wishes to file a rebuttal to a comment that was submitted previously must do so by April 2, 2015.

See: 80 FR 10528.Related news: FINRA Proposes to Adopt NASD Rules Regarding Research Analysts and Research Reports into FINRA Rulebook (November 14, 2014).