The Securities and Exchange Commission (SEC) recently issued Release No. 34- 65663 (the SEC Release), which seeks comments on the Financial Industry Regulatory Authority’s (FINRA) proposed amendments to proposed FINRA Rule 2210 (the Rule), issued in July of this year, regarding FINRA member firms’ communications with the public.
Additionally, the SEC instituted proceedings, pursuant to Section 19(b)(2)(B) of the Securities Exchange Act of 1934, in order to determine whether to approve the Rule, as modified by the amendments. The unusual step of instituting proceedings marks a new development in the SEC’s handling of self-regulatory organization (SRO) rulemaking that has been encouraged through recent procedural amendments required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. It is possible under the new procedural rules that SRO member firms will have greater opportunity for comment and the opportunity to request oral presentations of their views to the SEC.