The long anticipated overhaul of FINRA’s research rules has now been approved by the SEC. Most provisions of the new equity research rule (FINRA Rule 2241) will become effective on December 24, 2015, with limited provisions, including changes to equity research quiet periods, having already gone into effect on September 25, 2015. The fixed income research rule (FINRA Rule 2242) will become effective on February 22, 2016. Firms will be reviewing and revising their policies and procedures in response to the new rules. The requirements of the fixed income research rule will also require a cultural shift at some firms.
View full memo, FINRA’s New Fixed Income Research Rule and Modifications to Equity Research Rule