FINRA Solicits Comment on Reporting of Employee Trading (Fed. Reg.)
FINRA solicited comments on proposed FINRA Rule 3210 (Accounts at Other Broker-Dealers and Financial Institutions), as modified by Partial Amendment No. 1, in the Federal Register.
Proposed Rule 3210 would replace current NASD Rule 3050 and specify the particular information that employees of a broker-dealer must provide to their employer regarding trades at an outside firm. Specifically, Partial Amendment No. 1 would:
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exclude from the reporting requirement unit investment trusts, municipal fund securities, qualified tuition programs pursuant to Section 529 ('Qualified Tuition Programs') of the Internal Revenue Code and variable contracts or redeemable securities of companies registered under the Investment Company Act;
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establish a rebuttable presumption that an associated person has a beneficial interest in an account held by an individual listed in proposed Rule 3210.02(a)-(d);
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require that in order for an associated person to be presumed to have a beneficial interest in an account held by their spouse, the spouse must [reside] in the same household as the associated person; and
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state that an associated person could overcome the presumption of beneficial interest in an account by [demonstrating], to the satisfaction of the employer member, that the associated person derives no economic benefit from the account.
Comments on the proposal must be submitted by January 4, 2016.