On September 17, 2024, the Securities and Exchange Commission (SEC) approved a proposed rule change to amend Financial Industry Regulatory Authority, Inc.’s (FINRA) Rule 3240, citing Malecki Law in their approval order. Rule 3240 previously prohibited registered persons from borrowing from or lending money to their customers, with the five…
FINRA has proposed a change to its Rule 12800, which addresses simplified arbitration involving cases of $50,000 or less. Specifically, the proposal, (Release No. 34-100204; File No. SR-FINRA-2024-008), would amend provision 12800(g)(1), giving customers in paper cases and special proceedings the option to elect whether they want Document Production Lists…
FINRA has recently proposed changes to its Rule 3240, which allows for scenarios where brokers can borrow from or lend to their clients. FINRA’s rule proposal would strengthen and clarify the general prohibition against these types of arrangements and would narrow the exceptions that fall under the prohibition. In its…