FINRA Offers Changes to Proposed Rules Governing Markups, Commissions and Fees

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In February 2011, the Financial Industry Regulatory Authority initially sought comment on proposed rules governing markups, commissions and fees. The initial proposal sought to eliminate the 5% rule for markups and markdowns. In response to the comments received, FINRA has offered several changes to the proposed rules. Among other things, the changes include retention of the 5% rule for markups and markdowns, modification of the relevant factors used to determine the reasonableness of markups and commissions, elimination of the requirement to provide commission schedules for equity securities transactions to retail customers and extension of the proposed markup rules to transactions in certain government securities. FINRA requests comment on the revised proposal. Comments must be received by April 1, 2013.

Click here for the FINRA notice.

 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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