August 30, 2015

August 28, 2015

August 27, 2015

Financial Industry Regulatory Authority (FINRA) Offers Changes to Proposed Rules Governing Markups, Commissions and Fees

In February 2011, the Financial Industry Regulatory Authority initially sought comment on proposed rules governing markups, commissions and fees. The initial proposal sought to eliminate the 5% rule for markups and markdowns. In response to the comments received, FINRA has offered several changes to the proposed rules. Among other things, the changes include retention of the 5% rule for markups and markdowns, modification of the relevant factors used to determine the reasonableness of markups and commissions, elimination of the requirement to provide commission schedules for equity securities transactions to retail customers and extension of the proposed markup rules to transactions in certain government securities. FINRA requests comment on the revised proposal. Comments must be received by April 1, 2013.

Click here for the FINRA notice.

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About this Author

James Van De Graaff, Katten Muchin Law Firm, Financial Institutions Partner, Chi
Partner

James D. Van De Graaff primarily represents broker-dealers, investment banks and market-making firms in the regulatory aspects of their business. He has more than 20 years of experience representing financial services clients in compliance reviews and training, mergers and acquisitions and responding to inquiries or investigations involving the US Securities and Exchange Commission (SEC) and securities self-regulatory organizations.

Formerly the general counsel of a full-service, regional securities broker-dealer and New York Stock Exchange...

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