On February 14, 2013, FINRA sent an email to member firms that detailed its plan to reissue a package of controversial membership rules. The email stated that FINRA board had approved issuing a revised rule proposal.
The original proposal drew a harsh response from the industry because they believed the proposed rules were over-reaching. FINRA’s original proposal planned to require 30 days notice for changes in a number of routine business activities, such as:
•advance notice of new products or services;
•expansion of personnel beyond certain limits;
•transactions that involved 10% or more of a firm’s ownership, assets or revenue; and
•changes in a member’s service providers.
The proposal is designed to avoid fraud by broker dealers and their affiliates. However, David Bellaire, FSI general counsel, stated “that [FINRA’s] email did not specify what will be included in the new proposal.
Jason Doss is the owner of The Doss Firm, LLC, an Atlanta-based law firm devoted to representing consumers across the country in a variety of areas including investment disputes and consumer class action litigation. Mr. Doss earned his J.D. from Florida State University in 2002 and his B.A. from the University of Florida in 1997.