FINRA Proposes Consolidated Rules Governing Membership Application Process

The Financial Industry Regulatory Authority ("FINRA") recently proposed and requested comment on new rules relating to FINRA membership as part of its ongoing effort to produce a consolidated rulebook.¹ The proposed FINRA rules would adopt many provisions of the current NASD rules, while incorporating certain provisions of the NYSE membership rules. The proposed rules are intended to streamline the standards of review for new and continuing membership applications, clarify certain administrative aspects of the process, update or eliminate outdated terminology and require certain additional information about the applicant, including information as to business activities and control relationships with affiliates. Such information is intended to allow FINRA to assess an applicant more comprehensively within its overall organizational structure.