On August 23, 2023, the Securities and Exchange Commission (SEC) made significant changes to the SEC Rule 15b9-1 that now obligates almost all broker-dealers to register as members of the Financial Industry Regulatory Authority (FINRA).
Prior to these amendments, numerous broker-dealers had been exempted from FINRA membership. The adjustments, however, have now narrowed that exclusionary space, compelling the majority of broker-dealers to comply with the registration requirement.
This development is poised to impact the governance of broker-dealers and the functioning of securities markets in the U.S. The broadened FINRA membership should enhance oversight and accountability among the broker-dealer community.
As broker-dealers prepare for this change, they must thoroughly understand the amendments and their potential influence on operations. Now more than ever, they must maintain a keen eye on regulatory compliance and in-depth understanding of the securities markets.
For more details about this transition, you can visit this article from JD Supra. The write up has been contributed by experts from Katten Muchin Rosenman LLP, known for its work in the realm of financial markets and regulations.