Share on LinkedInShare on LinkedIn

ARTICLE · 17 MAY 2011

Update: FINRA Proposes Changes to FINRA Rule 5131

Bracewell LLP
Bracewell LLP
Contributor
Bracewell LLP

Bracewell LLP

Paris is a vital energy hub in Europe, and our Paris office plays a central role in helping address...

View firm profile
Explore more from Bracewell LLP

Please note the following recent developments with respect to the new FINRA Rule 5131, as described in our previous client alert entitled "New FINRA Rule 5131 Relating to Allocation and Distribution of Shares in IPOs Approved by the SEC", dated March 23, 2011.

United StatesFinance and Banking
Robert Frenchman
Robert Frenchman
Josephine Moon
Josephine Moon
Julian Rainero
Julian Rainero

Please note the following recent developments with respect to the new FINRA Rule 5131, as described in our previous client alert entitled "New FINRA Rule 5131 Relating to Allocation and Distribution of Shares in IPOs Approved by the SEC", dated March 23, 2011.

FINRA has proposed two changes to amend Rule 5131. FINRA first proposes to simplify the spinning provision of the rule set forth in Rule 5131(b) by deleting paragraph (b)(1), which requires that members establish, maintain and enforce policies and procedures reasonably designed to ensure that investment banking personnel have no influence in the new issue allocation of such members. This proposal is due primarily to concerns regarding how to interpret the term "investment banking personnel" which is not defined in the rule. Because firms are currently required to have written policies and procedures with respect to spinning prohibitions in paragraph (b)(2) pursuant to NASD Rule 3010, FINRA believes the

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

SEC Advances “Responsible Retailization” Through A Potential Accredited Investor Exam And Potential Regulated Fund Reforms

On September 30, 2026, the Securities and Exchange Commission (SEC) issued two rule proposals and five notices aimed at expanding investors’ access to private markets. The package would add ways to qualify as an accredited investor, including passing a new exam administered by the Financial Industry Regulatory Authority (FINRA), broaden performance-based compensation and modernize regulated funds, including interval funds and business development companies (BDCs).
United StatesFinance and Banking
Proskauer Rose LLP
Proskauer Rose LLP
Article

New NYSE Delisting Rules: What Microcap Companies Need To Know About The $0.25 Minimum Trading Price

The SEC has approved new NYSE and NYSE American listing rules establishing a $0.25 minimum trading price, effective July 1, 2027. A single closing price below this threshold triggers immediate trading suspension and delisting proceedings with no cure period. Companies trading at low share prices must act now during the transition period to implement reverse stock splits and establish monitoring procedures before this hard floor takes effect.
United StatesFinance and Banking
Bevilacqua
Bevilacqua
Article

The SEC’s Proposed “Regulation Crypto Assets” Provides A New Framework For Regulatory Clarity

The U.S. Securities and Exchange Commission has proposed Regulation Crypto Assets, introducing two new exemptions from registration requirements and a safe harbor provision for investment contracts involving crypto assets. How will these tailored frameworks—the Startup Exemption for offerings up to $5M and the Fundraising Exemption for larger capital raises—reshape the regulatory landscape for digital asset issuers while preserving investor protections?
United StatesFinance and Banking
Winston Taylor
Winston Taylor
Article

SEC And CFTC Open Door To Tokenized Markets After Clarity Fails To Advance

The SEC and CFTC have issued coordinated regulatory relief measures that significantly advance crypto-based trading infrastructure in US markets, bypassing Congressional gridlock on the CLARITY Act. These orders establish new frameworks for tokenized securities venues and passive software providers, potentially reshaping how digital assets are traded and accessed in regulated markets.
United StatesFinance and Banking
K&L Gates
K&L Gates
Article

The Financing Problem Behind the AI Infrastructure Boom: What Lenders and Sponsors Need to Watch

As AI infrastructure spending surges toward $697 billion in 2026, hyperscalers and compute providers are increasingly turning to debt, structured financing, and GPU-backed collateral to fund expansion. While demand projections remain bullish, a critical timing gap is emerging between capital deployment and cash flow generation, creating significant risks for lenders, sponsors, and operators across the ecosystem.
United StatesFinance and Banking
Riveron
Riveron
Article

SEC Issues “Innovation Exemption” To Facilitate Trading Of Tokenized NMS Stock

The SEC has issued a groundbreaking Innovation Exemption allowing tokenized securities venues to facilitate trading of tokenized NMS stocks using automated market makers and liquidity pools. This temporary five-year exemption from exchange and dealer registration requirements establishes conditions for permissioned blockchain-based trading while granting public companies a 30-day window to object to third-party tokenization of their securities.
United StatesFinance and Banking
A&O Shearman
A&O Shearman
Article

Basel III Endgame Evolution: Banking Agencies Propose Major Capital Overhaul (Again)

On March 19, 2026, the federal banking agencies issued a package of proposed changes to the regulatory capital requirements for banking institutions of all sizes, from the largest GSIBs and super-regional banks to community banks (the “Proposed Rules”). This package of proposals is a second full attempt at implementing the 2017 “Basel III Endgame” international framework—following the agencies’ initial package of proposals in July 2023 (the “2023 NPR”)—to better reflect credit, trading and operational risk in the calculation of minimum regulatory capital ratios.
United StatesFinance and Banking
Simpson Thacher & Bartlett LLP
Simpson Thacher & Bartlett LLP
Article

HRSA Announces Updated 340B Rebate Model Pilot Program, Limited To Drugs Subject To A Maximum Fair Price (MFP) For 2026 And 2027

The Health Resources and Services Administration has announced a revised 340B Rebate Model Pilot Program for drugs subject to Medicare's Maximum Fair Price, expanding eligibility to manufacturers with selected drugs for 2026 and 2027. The program introduces new data requirements, dispute resolution mechanisms, and stricter compliance monitoring while addressing stakeholder concerns about administrative burden and program integrity.
United StatesFinance and Banking
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
Article

Governor Abbott Orders TCEQ To Pause All Permit Issuance For Data Center Projects

Governor Abbott has ordered Texas environmental regulators to halt all data center permit issuance until grid operators complete a comprehensive audit in mid-December 2026. The sweeping directive affects not only grid-connected facilities but also fully islanded data centers relying on behind-the-meter generation, creating uncertainty for developers and their contractual obligations.
United StatesEnvironment
Bracewell LLP
Bracewell LLP
Article

Trump Administration Issues Executive Order Regarding Bulk Power System Equipment; DOE Requests Further Information

President Trump's Executive Order 14421 establishes a comprehensive framework for screening foreign-produced equipment in the U.S. bulk-power system, potentially affecting transformers, inverters, battery storage, and control systems tied to certain foreign entities. The Department of Energy has 120 days to issue implementing regulations and is seeking stakeholder input through a Request for Information to balance grid security concerns with reliability, supply chain constraints, and economic impacts across
GlobalEnergy and Natural Resources
Bracewell LLP
Bracewell LLP
Article

KKR Agrees To Historic $250 Million Penalty For Alleged Violations Of HSR...

The Department of Justice announced a landmark $250 million settlement with KKR & Co. for allegedly submitting deficient Hart-Scott-Rodino Act notification forms across at least 16 transactions. This unprecedented penalty, the largest ever for HSR violations, raises critical questions about merger notification compliance obligations and the consequences of systemic noncompliance with federal antitrust review requirements.
United StatesAntitrust/Competition Law
Bracewell LLP
Bracewell LLP
Article

Operation Economic Outcast: Two Key Updates Two Weeks In

The Trump administration's Operation Economic Outcast represents an unprecedented escalation in Iran sanctions enforcement, threatening secondary sanctions against entire countries while expanding sectoral restrictions and targeting financial institutions globally. Two weeks into implementation, the campaign reveals a complex geopolitical landscape where major powers like China and Russia openly defy US demands, while European allies navigate conflicting legal obligations between supporting American
GlobalInternational Law
Bracewell LLP
Bracewell LLP
Article

Trends In Russian Sanctions Enforcement In Europe And The UK

European and UK authorities are dramatically escalating sanctions enforcement against Russia-related violations, marking an unprecedented shift from policy development to aggressive prosecution. Recent actions span criminal convictions with multi-year prison sentences, substantial asset seizures, maritime interdictions of shadow fleet vessels, and penalties targeting both physical goods and digital infrastructure networks.
United KingdomCriminal Law
Bracewell LLP
Bracewell LLP
Article

Treasury Expands Operation Economic Outcast Toolbox With Focus On Foreign Financial Institutions

Treasury's Operation Economic Outcast is expanding beyond traditional sanctions to target foreign banks, digital-asset platforms, and shadow-banking networks that facilitate Iran's access to the global financial system. Through a combination of OFAC designations, FinCEN prohibitions, and actions against intermediary infrastructure, the administration is demonstrating its willingness to employ multiple punitive measures to achieve economic isolation. Financial institutions must now assess Iran-risk not just
United StatesGovernment, Public Sector
Bracewell LLP
Bracewell LLP
Article

AI In Expert Witness Testimony: What Litigators Need To Know About LLM Discovery Risks

Generative AI tools have quietly entered the expert witness process, and recent litigation developments show how exposed that process can become. Experts who use AI tools like ChatGPT or other LLMs to help draft reports may be creating a detailed, time-stamped record of their reasoning that opposing counsel can obtain and use to undermine the expert at deposition or trial.
United StatesLitigation, Mediation & Arbitration
Bracewell LLP
Bracewell LLP
Article

Treasury And IRS Issue Guidance On Emissions Rates For Clean Fuel Production Credit

The US Department of the Treasury and IRS have released new guidance establishing emissions rate tables and feedstock practices for the Section 45Z clean fuel production credit. The Notice addresses emissions rates for animal manure-derived transportation fuels and outlines how regenerative agricultural practices factor into credit calculations. Concurrently, the Department of Energy updated the 45ZCF-GREET model to include additional renewable natural gas pathways.
United StatesEnvironment
Bracewell LLP
Bracewell LLP