As previously covered, FINRA requested comments on FINRA Rule 5250, which generally prohibits a member firm from accepting payment from an issuer or its affiliates or promoters in exchange for making a market in the issuer's securities. The rule makes exceptions for (i) payments for bona fide services, (ii) reimbursements of payments for SEC or state registration fees and for listing fees imposed by a self-regulatory organization, and (iii) payments expressly provided for under the rules of a national securities exchange.
FINRA concluded that the rule continues to sufficiently meet its regulatory objectives. In addition, FINRA will consider providing guidance regarding the exception for certain advisory services.
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