- within Intellectual Property, Food, Drugs, Healthcare, Life Sciences and Transport topic(s)
FINRA urged the SEC to affirm its disapproval of a NYSE proposal to amend rules establishing maximum fee rates to be charged by member organizations for forwarding proxy and other materials to beneficial owners.
In a formal statement in connection with the Commission's Order Granting the Petition to review the disapproval, FINRA explained that the NYSE's petition seeks to (i) be relieved of its role as lead self-regulatory organization with respect to maximum reimbursement rates and (ii) have this role assigned to FINRA.
FINRA argued that the NYSE failed to support a conclusion that FINRA is better equipped to take on the NYSE's role. Further, FINRA stated that before any rule amendments can take place, issues regarding the appropriate structure to regulate fees for forwarding and processing proxy and other materials must be properly presented, discussed, and considered. FINRA concluded "that the Proposal is premature and incorrectly predicated on FINRA assuming primary responsibility for a regulatory regime that it has never led, and which FINRA is not best equipped to lead."
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