ARTICLE
7 August 2018

FINRA Proposes Changes To Membership Application Process

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
FINRA proposed amendments to NASD Rule 1010 (Membership Proceedings) to reduce burdens that the membership application process imposes on firms.
United States Finance and Banking

FINRA proposed amendments to NASD Rule 1010 (Membership Proceedings) to reduce burdens that the membership application process imposes on firms. The proposal is a response to the retrospective review (from March 2015) of the membership application program ("MAP") rules. If adopted, the amendments would replace the NASD Rule 1010 Series with the FINRA Rule 1100 Series (New and Continuing Membership).

The proposed amendments to the MAP rules include, among other things:

  • adopting a new rule series for new membership applications and continuing membership applications ("CMAs");
  • improving the MAP rules to make the application process more efficient;
  • clarifying the events that would require the filing of a CMA; and
  • reducing the overall application review period from 180 to 150 days.

Comments must be received by October 5, 2018.

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