FINRA Rules Incorporated by Reference
Rule Filings Incorporated by Reference
IEX has incorporated certain FINRA rules by reference. As such, IEX will periodically provide updates where applicable when there are new proposals or approvals to amend these incorporated rules by FINRA. The FINRA rule filings are not effective until approved by the Securities and Exchange Commission ("SEC"), with the exception of certain types of rule filings that may take effect upon filing with the SEC if they meet the conditions specified under Section 19 of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. Below are relevant updates.
| IEX Rule | FINRA Rule Filing Description | FINRA Rule Filing Link | Status |
|---|---|---|---|
| 3.280 – Communications with Customers and the Public (incorporates FINRA Rule 2210) | Proposed Rule Change to create a filing exclusion under FINRA Rule 2210 for covered investment fund research reports. | SR-FINRA-2019-017 | Effective |
| 4.512 – Customer Account Information (incorporates FINRA Rule 4512) | Proposed Rule Change to amend paragraph (a)(3) of FINRA Rule 4512 (Customer Account Information) to permit the use of electronic signatures and to clarify the scope of the rule. | SR-FINRA-2018-040 | Effective |
| 3.280 – Communications with Customers and the Public (incorporates FINRA Rule 2210) | Proposed Rule Change to Adopt NASD Interpretive Material 2210-2 as FINRA Rule 2211 (Communications with the Public About Variable Life Insurance and Variable Annuities) in the Consolidated FINRA Rulebook | SR-FINRA-2016-036 | Effective |
| 3.280 – Communications with Customers and the Public (incorporates FINRA Rule 2210) | Proposed Rule Change to Clarify the Application of FINRA Rule 2210 (Communications with the Public) to Debt Research Reports | SR-FINRA-2016-021 | Effective |
| 4.512 – Customer Account Information (incorporates FINRA Rule 4512) | Proposed Rule Change to amend FINRA Rule 4512 (Customer Account Information) to require members to make reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account | SR-FINRA-2016-039 | Effective |
| 11.420(d) – Recording of Order Information (incorporates FINRA Rule 7440) | Rule change to update cross-references and make other non-substantive changes within FINRA rules, due in part to the adoption of a new consolidated FINRA rule. | SR-FINRA-2016-026 | Effective |
FINRA Rule Filings to Amend FINRA Code of Arbitration
Pursuant to IEX Rule 12.110, "the Rule 12000 Series and Rule 13000 Series of the FINRA Manual (Code of Arbitration Procedures for Customer Disputes and Code of Arbitration for Industry Disputes) (the “FINRA Code of Arbitration”), as the same may be in effect from time to time, shall govern Exchange arbitrations except as may be specified in this IEX Rule 12.110. Definitions in the FINRA Code of Arbitration shall have the same meaning as that prescribed therein, and procedures contained in the FINRA Code of Arbitration shall have the same application as toward Exchange arbitrations."
As a result of IEX Rule 12.110, changes to the FINRA Code of Arbitration could have an impact on arbitrations conducted under IEX rules. Accordingly, below are links to pending FINRA rule filings with the SEC seeking to amend the FINRA Code of Arbitration as well as any SEC orders approving or disapproving those FINRA rule filings.
| IEX Rule | FINRA Rule Filing Description | FINRA Rule Filing Link | Status |
|---|---|---|---|
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Amend the FINRA Code of Arbitration Procedure to Increase Arbitrator Chairperson Honoraria and Certain Arbitration Fees | SR-FINRA-2020-035 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Amendments to the Codes of Arbitration Procedure Relating to Requests to Expunge Customer Dispute Information, Including Creating a Special Arbitrator Roster to Decide Certain Expungement Requests | SR-FINRA-2020-030 | Withdrawn |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Amend the FINRA Code of Arbitration Procedure to Apply Minimum Fees to Requests for Expungement of Customer Dispute Information | SR-FINRA-2020-005 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Amend FINRA Rule 12000 Series to Expand Options Available to Customers if a Firm or Associated Person is or Becomes Inactive | SR-FINRA-2019-027 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Expand Time for Non-Parties to Respond to Arbitration Subpoenas and Orders of Appearance of Witnesses or Production of Documents | SR-FINRA-2019-004 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Provide That FINRA Will Pay Each Arbitrator a $200 Honorarium to Decide Without a Hearing Session a Contested Subpoena Request or a Contested Order for Production or Appearance | SR-FINRA-2018-026 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Create a $100 Fee and Honorarium for Late Cancellation of a Prehearing Conference | SR-FINRA-2018-019 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change Relating to Eliminate the Fee for an Explained Decision | SR-FINRA-2018-012 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Filing Relating to Simplified Arbitration | SR-FINRA-2018-003 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change Relating to Revisions to the Definition of Non-public Arbitrator. | SR-FINRA-2017-025 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change to Amend the Customer And Industry Codes to Expedite List Selection in Arbitration | SR-FINRA-2017-009 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change Relating to Broadening Chairperson Eligibility in Arbitration | SR-FINRA-2016-033 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change Relating to Motions to Dismiss in Arbitration | SR-FINRA-2016-030 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Relating to use of the Dispute Resolution Party Portal in Arbitration and Mediation | SR-FINRA-2016-029 | Effective |
| 12.110 – Arbitration (incorporates FINRA Rule 12000 Series and Rule 13000 Series) | Proposed Rule Change Relating to the Panel Selection Process in Customer Cases with Three Arbitrators. | SR-FINRA-2016-022 | Effective |