RegAlert2026-10-09 | Regulatory Notice 26-17Added
FINRA Amends Rule 4515.01 Regarding Allocations of Investment Adviser Bulk Orders
Members accepting orders from registered outside investment advisers or their associated persons must receive specific account designations or customer names by the end of the trade date to allow allocations without principal approval. This exception excludes accounts handled by individual registered representatives exercising discretionary authority under Rule 3260. Members must not facilitate allocations that violate the investment adviser’s intent to allocate shares on a percentage basis or their fiduciary duty regarding transaction performance between execution and allocation. The rule applies only where multiple customers exist for a particular order.
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Attachment A
New language is underlined; deletions are in brackets.
FINRA Rules
- BOOKS, RECORDS AND REPORTS
- BOOKS AND RECORDS REQUIREMENTS
- Approval and Documentation of Changes in Account Name or Designation
No Change.
Supplementary Material: --------------
.01 Allocations of Orders Made by Investment Advisers. Members may accept orders from investment advisers as described below and allow such investment advisers to make allocations on their orders for customers on whose behalf the investment advisers submit the orders without the principal approval required by this Rule[, provided that members receive specific account designations or customer names from such investment advisers by no later than the end of the day on the trade date]. This exception only applies where there is more than one customer for any particular order. In addition, this exception applies to: (a) outside investment advisers; and (b) associated persons of a member who provide investment advisory services on behalf of a member acting as an investment adviser. However, in either instance, the investment adviser must be one who is registered under the Investment Advisers Act or who, but for Investment Advisers Act Section 203(b) or 203A, would be required to register under the
Investment Advisers Act. It does not apply to accounts handled by individual registered representatives of members who otherwise exercise discretionary authority over accounts pursuant to Rule 3260. Nothing in this Rule or Supplementary Material may be construed as allowing a member knowingly to facilitate the allocation of orders from investment advisers in a manner other than in compliance with both (i) the investment adviser’s intent at the time of trade execution to allocate shares on a percentage basis to the participating accounts and (ii) the investment adviser’s fiduciary duty with respect to allocations for such participating accounts, including but not limited to allocations based on the performance of a transaction between the time of execution and the time of allocation.
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Source: Financial Industry Regulatory Authority — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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