SEC Institutes Proceedings to Consider FINRA's Proposal to Adopt Debt Research Rule (Fed. Reg.)

The SEC order instituting proceedings to determine whether to approve or disapprove the FINRA proposal to adopt Rule 2242 was published in the Federal Register.

Rule 2242 would address conflicts of interest relating to the publication and distribution of debt research reports. According to FINRA's proposal, the rule would adopt a tiered approach to provide retail debt research recipients with "extensive protections" similar to those provided to recipients of equity research under current and proposed FINRA rules, with modifications to reflect differences in the trading of debt securities.

The SEC has received five comments on the proposal since it was filed, all of which expressed general support. 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 10538.
Related news: FINRA Proposes to Amend Debt Research Rules (November 14, 2014).