FINRA Board approves of proposed amendments to Communications with the Public Rules 2210, including changes to Rule 2214 (Requirements for the Use Investment Tools Analysis) and Rule 2213 (Requirements for the Use of Bond Mutual Fund Volatility Ratings).
Thursday April 16, 2015 – FINRA Video Update and letter from the Chairman and CEO addresses the approval. The proposed amendments would eliminate certain filing requirements that are low-level risk to investors. According to Jack Brennan, changes to requirements include removing the filings requirement of Shareholder reports, because they are already filed with the SEC. Additionally they are looking at removing requirements for filing reports when discussing investment companies generically, and communications discussing investment analysis tools.
In the April 2015 Board Update Video, Jack Brennan goes on to explain that FINRA is making an effort toward modernizing rules, especially where there is low-level risk. The changes are intended to better align investor protection with economic impact.
Rule 2213 – Requirements for the Use of Bond Mutual Fund Volatility Ratings | FINRA proposes to narrow and refine the scope of disclosures required under Rule 2213.
Rule 2214 – Requirements for the Use of Investment Analysis Tools | Rule 2214 is proposed to be affected with regards to retail communication requirements.
These are the first set of rule changes to the Communications with the Public Rules as a result of FINRA’s retrospective rule review program launched April 2014. FINRA will issue a regulatory notice in coming months seeking public comment on the proposed changes. Stay tuned.
Read the Letter from Richard Ketchum dated April 16, 2015