FINRA Offers Amendment to Proposed Rules for Capital Acquisition Brokers (Fed. Reg.)

The Federal Register published a FINRA amendment to a proposal to create a separate rule set for firms that meet the definition of "capital acquisition broker" and elect to be governed under it.

The amendment would clarify that the definition of "capital acquisition broker" does not include any broker or dealer that effects securities transactions that would require the broker or dealer to report the transaction under the FINRA Rules 6300 Series, 6400 Series, 6500 Series, 6600 Series, 6700 Series, 7300 Series or 7400 Series.

In addition to the amendment, FINRA also filed: (i) Exhibit 4, which reflects changes to the text of the proposed rule change pursuant to this amendment, marked to show additions to the text as proposed in the original filing, and (ii) Exhibit 5, which reflects the changes to the current rule text that are proposed in the proposed rule change, as amended.

Comments on the amendment are due by May 6, 2016.