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Financial Industry Regulatory Authority (FINRA) Amends Rules Relating to Research Analysts and Research Reports

The Financial Industry Regulatory Authority has issued Regulatory Notice 12-49 regarding the Securities and Exchange Commission’s approval of amendments to NASD Rule 2711 and incorporated NYSE Rule 472 relating to research analysts and research reports.

Pursuant to the Jumpstart Our Business Startups Act and SEC staff guidance, the rules have been amended to allow research analysts to attend meetings with management of an issuer that meets the definition of an emerging growth company (EGC), even if investment bankers also attend the meetings. However, during the meetings research analysts must not engage in otherwise prohibited conduct, such as efforts to solicit investment banking business. These changes are effective retroactively to April 5, 2012.

The rules also have been amended to eliminate certain quiet periods after an initial public offering of an EGC, effective retroactively to April 5, 2012. Similarly, certain quiet periods relating to secondary offerings or termination of lock-up agreements also have been eliminated, effective retroactively to October 11, 2012.

More information is available here.

©2023 Katten Muchin Rosenman LLPNational Law Review, Volume II, Number 319
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About this Author

James M. Brady, Katten Muchin Law Firm, Finance Attorney
Associate

James Brady concentrates his practice in financial services matters.

While in law school, James was an editor of the Michigan Journal of International Law. He also served as a judicial intern to the Honorable Stephen J. Markman of the Michigan Supreme Court. http://www.kattenlaw.com/James-Brady

312-902-5362
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