In our recent Client Alert, we wrote about the Financial Industry Regulatory Authority, Inc.'s proposed changes to Rule 2210, Communications with the Public.1 One of the proposed amendments was to change the pre-use filing requirement in Rule 2210(c)(1)(A) applicable to new member firms to, in large part, a concurrent with use requirement (within 10 business days of first use). This filing requirement applies to retail communications used in electronic or other public media by member firms within one year of the effective date of their FINRA membership. Under the original proposed amendments, new member firms would only have to make a pre-use filing of their website and material changes to their website.
In response to comments received, FINRA filed a Partial Amendment No. 1 to its original proposal on September 1, 2016, and the Securities and Exchange Commission approved the proposal, as modified by Partial Amendment No. 1, on an accelerated basis on September 13, 2016.2 The public is invited to comment on the revised proposal through October 11, 2016.
The only change to the previous proposed amendments was a decision by FINRA not to amend the pre-use filing requirement of Rule 2210(c)(1)(A), which will remain in its current state. FINRA decided to defer changes while it accumulates more data on the frequency and types of revisions required for new member retail communications.