FINRA adopted amendments to a rule on reporting and fee requirements for the delivery by broker-dealers of proxy and other issuer-related materials.
As previously covered, the amendments to FINRA Rule 2251 ("Processing and Forwarding of Proxy and Other Issuer-Related Materials") would:
- allow certain registered investment companies to satisfy their shareholder report delivery obligations by making the reports available electronically on a website using a "notice and access" process;
- limit the maximum fees that its member broker-dealers could charge to issuers utilizing the process; and
- make conforming revisions to match the fee provisions set forth by the New York Stock Exchange.
The amendments are immediately effective and comments must be submitted by January 10, 2022.
Primary Sources
- Federal Register: Self-Regulatory Organizations; FINRA; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend FINRA Rule 2251 ("Processing and Forwarding of Proxy and Other Issuer-Related Materials")
- SR-FINRA-2021-032: Proposed Rule Change to Amend FINRA Rule 2251 ("Processing and Forwarding of Proxy and Other Issuer-Related Materials")
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
