Regulatory Alerts2025-03-20 | Regulatory Notice 25-06Added · Updated
FINRA Requests Comment on Modernizing Rules, Guidance, and Processes to Facilitate Capital Formation
FINRA has extended the comment period for Regulatory Notice 25-06 to June 18, 2025, from the original May 19, 2025. The Financial Industry Regulatory Authority (FINRA) is conducting a broad review of its regulatory requirements for member firms and associated persons, focusing initially on capital formation. This notice requests public comment on potential modifications to FINRA rules, guidance, operations, or administrative processes to further facilitate capital formation and reduce unnecessary regulatory costs. Specifically, FINRA seeks feedback on rules related to capital acquisition brokers, research (Rules 2241, 2242), direct participation programs (Rule 2310), corporate financing (Rule 5110), public offerings with conflicts of interest (Rule 5121), private placements (Rules 5122, 5123), new issue allocations (Rules 5130, 5131), and guidance on public sale eligibility (Regulatory Notice 09-05).