The Financial Industry Regulatory Authority (FINRA) recently released and is requesting comments on its proposed research registration and conflict of interest rules. Among other changes, the proposed rules would change the “quiet period” during which a FINRA member firm participating in a securities offering cannot publish or distribute research reports about the issuer and the firm’s research analysts cannot make public appearances related to the issuer.Firms still would be required to comply with any additional quiet periods imposed by the federal securities laws.
The proposed rules would shorten the quiet period for an initial public offering (IPO) to at least 10 days after the IPO, as compared with the current rules’ requirements of a quiet period for lead underwriters of at least 40 days after The proposed rules would also eliminate the current 10-day quiet period after secondary offerings and the 15-day quiet periods before and after the expiration, waiver or termination of a lock-up agreement.
FINRA has proposed these rule changes as part of its process to develop a new, consolidated rulebook, and these proposed changes would supersede the proposed changes to these rules pending before the Securities and Exchange Commission. FINRA has requested comments on these proposed rule changes; such comments must be received by November 14.