Title

FINRA Requests Comment on Proposed Rules Governing Markups, Commissions and Fees
Client Memorandum

Created date

2/15/2013
On January 31, 2013, the Financial Industry Regulatory Authority (“FINRA”) issued a Regulatory Notice requesting comment on new proposed FINRA rules governing markups, markdowns, commissions and other fees. FINRA’s proposal would transfer several existing NASD rules and interpretations and a New York Stock Exchange (“NYSE”) rule to the FINRA rulebook, while making several substantive changes. The proposal is similar to a 2011 FINRA proposal to revise the markup rules (the “2011 Proposal”). However, in response to comments received, FINRA abandoned the 2011 Proposal’s plan to eliminate FINRA’s long-standing “5% Policy” for markups and made a number of other substantive changes.