New FINRA Rule 2241 consolidates and expands upon legacy
NASD and NYSE rules to address equity research analyst activities,
equity research reports, and conflicts of interest relating to
equity research analysts. New FINRA Rule 2242 for the first time
regulates debt research analyst activities, debt research reports,
and related conflicts of interest.
On July 16, the Securities and Exchange Commission (SEC)
approved two Financial Industry Regulatory Authority (FINRA)
proposed rule changes pertaining to research analysts and research
reports.1 The first rule change amends and consolidates
into new FINRA Rule 2241 existing legacy NASD Rule 2711 and NYSE
Rule 472 with regard to equity research activities (the SRO Rules).
The second results in new FINRA Rule 2242, which for the first time
imposes SRO regulation on debt research reports and debt research
analysts. FINRA has not announced when these changes will take
effect.
