In a May 1 filing with the Securities and Exchange Commission, the Financial Industry Regulatory Authority proposed rule changes to modernize and simplify National Association of Securities Dealers Rule 2720, which governs public offerings of securities in which a member with a conflict of interest participates. Some of the more significant proposed changes include exempting certain public offerings from the filing and qualified independent underwriter (QIU) requirements, amending the definition of “conflict of interest,” modifying the disclosure requirements in regard to offering documents and amending the provisions regarding the use of QIUs. The rule change proposal also includes corresponding amendments to FINRA Rule 5110, “Corporate Financing Rule – Underwriting Terms and Arrangements.” The May 1 filing amends a rule change proposal filed on September 6, 2007. The SEC is accepting comments through June 3 on these proposed rule changes.  

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