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  • 0100. GENERAL STANDARDS

    • 0110. Adoption of Rules

      The Rules are adopted pursuant to Article VII, Section 1, of the FINRA By-Laws.

      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.

      Selected Notice: 08-57.

    • 0120. Effective Date

      The Rules shall become effective as provided in Article XI, Section 1, of the FINRA By-Laws.
      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.
      Amended by SR-NASD-98-86 eff. Nov. 19, 1998.

    • 0130. Interpretation

      The Rules shall be interpreted in light of the purposes sought to be achieved by the Rules and to further FINRA's regulatory programs.

      Cross Reference–

      Resolution under Article XI, Section 1, of the By-Laws: Interpretations and Explanations

      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.

      Selected Notice: 08-57.

    • 0140. Applicability

      (a) The Rules shall apply to all members and persons associated with a member. Persons associated with a member shall have the same duties and obligations as a member under the Rules.
      (b) A member or person associated with a member, who has been expelled, canceled or revoked from membership or from registration, or who has been barred from being associated with all members, shall cease to have any privileges of membership or registration. A member or person associated with a member who has been suspended from membership or registration shall also cease to have any privileges of membership or registration other than those under the Code of Procedure as set forth in the Rule 9000 Series or insurance programs sponsored by FINRA. In neither case shall such a member or person associated with a member be entitled to recover any admission fees, dues, assessments or other charges paid to FINRA.
      (c) A member or person associated with a member who has been suspended from membership or from registration shall be considered as a non-member during the period of suspension for purposes of applying the provisions of the Rules which govern dealings between members and non-members. However, such member or person associated with a member shall have all of the obligations imposed by the Rules.

      Cross Reference–

      Rule 8311, Effect of a Suspension, Revocation or Bar

      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.
      Amended by SR-NASD-95-39 eff. Aug. 20, 1996.

      Selected Notices: 87-53, 88-96, 08-57.

    • 0150. Application of Rules to Exempted Securities Except Municipal Securities

      (a) For purposes of this Rule, the terms "exempted securities" and "municipal securities" shall have the meanings specified in Sections 3(a)(12) and 3(a)(29) of the Exchange Act, respectively.
      (b) The Rules are not intended to be, and shall not be construed as, rules concerning transactions in municipal securities.
      (c) Unless otherwise indicated within a particular Rule, the following FINRA and NASD rules are applicable to transactions in, and business activities relating to, exempted securities, except municipal securities, conducted by members and associated persons: FINRA Rules 2010, 2020, 2060, 2111, 2122, 2150, 2210, 2211, 2212, 2261, 2268, 2269, 2320(g), 3110, 3210, 3220, 3270, 3280, 4120, 4130, 4210, 4311, 4330, 4360, 4510 Series, 4530, 5160, 5210, 5220, 5230, 5310, 5340, 6700 Series, 8110, 8120, 8210, 8310, 8311, 8312, 8320, 8330 and 9552; NASD Rules 2340, 2510 and 3140.
      (d) FINRA Rule 2121 is applicable to transactions in, and business activities relating to, exempted securities that are government securities.
      Amended by SR-FINRA-2016-027 eff. July 10, 2017.
      Amended by SR-FINRA-2017-004 eff. April 3, 2017.
      Amended by SR-FINRA-2016-036 eff. Sep. 30, 2016.
      Amended by SR-FINRA-2016-004 eff. Feb. 10, 2016.
      Amended by SR-FINRA-2015-033 eff. Dec. 14, 2015.
      Amended by SR-FINRA-2015-030 eff. Sept. 21, 2015.
      Amended by SR-FINRA-2014-045 eff. Dec. 1, 2014.
      Amended by SR-FINRA-2014-049 eff. Nov. 21, 2014.
      Amended by SR-FINRA-2014-016 eff. May 1, 2014.
      Amended by SR-FINRA-2013-001 eff. Feb. 4, 2013.
      Amended by SR-FINRA-2012-027 eff. July 9, 2012.
      Amended by SR-FINRA-2011-052 eff. May 31, 2012.
      Amended by SR-FINRA-2011-065 eff. Jan. 1, 2012.
      Amended by SR-FINRA-2011-065 eff. Dec. 5, 2011.
      Amended by SR-FINRA-2011-030 eff. Aug. 1, 2011.
      Amended by SR-FINRA-2011-024 eff. July 1, 2011.
      Amended by SR-FINRA-2010-060 eff. Dec. 15, 2010.
      Amended by SR-FINRA-2010-023 eff. June 14, 2010.
      Amended by SR-FINRA-2010-010 eff. April 19, 2010.
      Amended by SR-FINRA-2010-002 eff. Feb. 15, 2010.
      Amended by SR-FINRA-2010-002 eff. Feb. 8, 2010.
      Amended by SR-FINRA-2009-078 eff. Dec. 14, 2009.
      Amended by SR-FINRA-2009-062 eff. Oct. 19, 2009.
      Amended by SR-FINRA-2008-057 eff. Dec. 15, 2008.
      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.
      Amended by SR-NASD-2003-110 eff. June 28, 2004.
      Adopted by SR-NASD-2000-38 eff. Oct. 28, 2001.

      Selected Notices: 01-63, 04-36, 08-57, 12-13, 16-03, 16-39.

    • 0151. Coordination with the MSRB

      (a) FINRA will request guidance from the MSRB in interpretation of the rules of the MSRB. FINRA also will provide information to the MSRB about the enforcement actions and examinations pertaining to municipal securities brokers, municipal securities dealers, and municipal advisors conducted by FINRA regarding the Exchange Act and the rules and regulations thereunder and the rules of the MSRB, so that the MSRB may: (1) assist in such enforcement actions and examinations; and (2) evaluate the ongoing effectiveness of the rules of the MSRB.
      Adopted by SR-FINRA-2016-004 eff. Feb. 10, 2016.

    • 0160. Definitions

      (a) The terms used in the Rules, if defined in the FINRA By-Laws, shall have the meaning as defined in the FINRA By-Laws, unless a term is defined differently in a Rule, or unless the context of the term within a Rule requires a different meaning.
      (b) When used in the Rules, unless the context otherwise requires:
      (1) "By-Laws"
      The term "By-Laws" means the By-Laws of the Corporation or the FINRA By-Laws.
      (2) "Code of Procedure"
      The term "Code of Procedure" means the procedural rules contained in the Rule 9000 Series.
      (3) "Completion of the Transaction"
      The term "completion of the transaction" means:
      (A) In the case of a customer who purchases a security through or from a member, except as provided in subparagraph (B), the time when such customer pays the member any part of the purchase price, or, if payment is effected by a bookkeeping entry, the time when such bookkeeping entry is made by the member for any part of the purchase price;
      (B) In the case of a customer who purchases a security through or from a member and who makes payment therefor prior to the time when payment is requested or notification is given that payment is due, the time when such member delivers, or credits such delivery of, the security to or into the account of such customer;
      (C) In the case of a customer who sells a security through or to a member, except as provided in subparagraph (D), if any security is not in the custody of the member at the time of sale, the time when the security is delivered to the member, and if the security is in the custody of the member at the time of sale, the earlier of when the member transfers the security from the account of such customer or the closing date of the transaction;
      (D) In the case of a customer who sells a security through or to a member and who delivers such security to such member prior to the time when delivery is requested or notification is given that delivery is due, the time when such member makes payment to or into the account of such customer.
      (4) "Customer"
      The term "customer" shall not include a broker or dealer.
      (5) "Exchange Act" or "SEA"
      The term "Exchange Act" or "SEA" means the Securities Exchange Act of 1934, as amended.
      (6) "FINRA"
      The term "FINRA" means, collectively, FINRA, Inc. and FINRA Regulation, Inc.
      (7) "FINRA Regulation"
      The term "FINRA Regulation" means FINRA Regulation, Inc.
      (8) "Investment Advisers Act"
      The term "Investment Advisers Act" means the Investment Advisers Act of 1940, as amended.
      (9) "Investment Company Act"
      The term "Investment Company Act" means the Investment Company Act of 1940, as amended.
      (10) "Member"
      The term "member" means any individual, partnership, corporation or other legal entity admitted to membership in FINRA under the provisions of Articles III and IV of the FINRA By-Laws.
      (11) "Office of Dispute Resolution"
      The term "Office of Dispute Resolution" means the office within FINRA Regulation that assumes the responsibilities and functions relating to dispute resolution programs including, but not limited to, the arbitration, mediation, or other resolution of disputes among and between members, associated persons and customers.
      (12) "Person"
      The term "person" shall include any natural person, partnership, corporation, association, or other legal entity.
      (13) "SEC"
      The term "SEC" means the Securities and Exchange Commission.
      (14) "Securities Act"
      The term "Securities Act" means the Securities Act of 1933, as amended.
      (15) "Selling Group"
      The term "selling group" means any group formed in connection with a public offering, to distribute all or part of an issue of securities by sales made directly to the public by or through members of such selling group, under an agreement which imposes no financial commitment on the members of such group to purchase any such securities except as they may elect to do so.
      (16) "Selling Syndicate"
      The term "selling syndicate" means any syndicate formed in connection with a public offering, to distribute all or part of an issue of securities by sales made directly to the public by or through participants in such syndicate under an agreement which imposes a financial commitment upon participants in such syndicate to purchase any such securities.
      (17) "State"
      The term "State" shall mean any state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, or any other possession of the United States.
      Amended by SR-FINRA-2015-034 eff. Dec. 20, 2015.
      Amended by SR-FINRA-2011-043 eff. Feb. 21, 2012.
      Amended by SR-FINRA-2010-029 eff. Feb. 8, 2011.
      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.
      Amended by SR-NASD-2006-104 eff. March 5, 2007.
      Amended by SR-NASD-2003-75 eff. July 9, 2003.
      Amended by SR-NASD-99-21 eff. July 9, 2000.
      Amended by SR-NASD-98-57 eff. March 26, 1999.
      Amended by SR-NASD-98-86 eff. Nov. 19, 1998.
      Amended by SR-NASD-97-28 eff. Aug. 7, 1997.

      Selected Notices: 08-57, 10-47, 12-04, 16-04.

    • 0170. Delegation, Authority and Access

      (a) The Financial Industry Regulatory Authority, Inc. delegates to FINRA Regulation, Inc. (hereinafter "FINRA Regulation") the authority to act on behalf of FINRA as set forth in a Plan of Allocation and Delegation adopted by the Board of Governors and approved by the SEC pursuant to its authority under the Exchange Act.
      (b) Notwithstanding any delegation of authority to FINRA Regulation pursuant to this Rule, the staff, books, records and premises of FINRA Regulation are the staff, books, records and premises of FINRA subject to oversight pursuant to the Exchange Act, and all officers, directors, employees and agents of FINRA Regulation are the officers, directors, employees and agents of FINRA for purposes of the Exchange Act.
      Amended by SR-FINRA-2015-034 eff. Dec. 20, 2015.
      Amended by SR-FINRA-2008-026 eff. Dec. 15, 2008.
      Amended by SR-NASD-2006-104 eff. March 5, 2007.
      Amended by SR-NASD-2005-087 eff. Aug. 1, 2006
      Adopted by SR-NASD-96-16 eff. Apr. 11, 1996.

      Selected Notices: 08-57, 16-04.

    • 0180. Application of Rules to Security-Based Swaps

      (a) The Rules shall not apply to members' activities and positions with respect to security-based swaps, except for the following:
      (1) FINRA Rule 2010;
      (2) FINRA Rule 2020;
      (3) FINRA Rule 3310; and
      (4) FINRA Rule 4240.
      (b) The following Rules shall apply to members' activities and positions with respect to security-based swaps only to the extent they would have applied as of July 15, 2011:
      (1) NASD Rule 3110 and all successor FINRA Rules to such NASD Rule;
      (2) the FINRA Rule 4500 Series; and
      (3) the FINRA Rule 4100 Series.
      (c) The following Rules shall apply as necessary to effectuate members' compliance with paragraphs (a) and (b) of this Rule:
      (1) the FINRA Rule 0100 Series;
      (2) the NASD Rule 1000 Series and all successor FINRA Rules to such NASD Rule Series;
      (3) the FINRA Rule 1000 and 1100 Series;
      (4) NASD Rules 3010 and 3012 and IM-3010-1 and all successor FINRA Rules to such NASD Rules and Interpretive Material;
      (5) FINRA Rule 3130;
      (6) the FINRA Rule 8000 Series; and
      (7) the FINRA Rule 9000 Series.
      (d) This Rule shall expire on February 12, 2018.

      • • • Supplementary Material: --------------

      .01 Definition of Security-Based Swaps. For purposes of this Rule, "security-based swap" shall be as defined pursuant to Exchange Act Section 3(a)(68) and the rules and guidance of the SEC or its staff.

      Amended by SR-FINRA-2017-001 eff. Feb. 11, 2017.
      Amended by SR-FINRA-2016-001 eff. Feb. 11, 2016.
      Amended by SR-FINRA-2015-001 eff. Feb. 11, 2015.
      Amended by SR-FINRA-2014-001 eff. Feb. 11, 2014.
      Amended by SR-FINRA-2013-019 eff. July 17, 2013.
      Amended by SR-FINRA-2012-056 eff. Dec. 12, 2012.
      Amended by SR-FINRA-2012-004 eff. Jan. 13, 2012.
      Adopted by SR-FINRA-2011-033 eff. July 8, 2011.

    • 0190. Effective Date of Revocation, Cancellation, Expulsion, Suspension or Resignation

      (a) A member shall be considered as a non-member of FINRA from the effective date of any order or notice from FINRA or the SEC issuing a revocation, cancellation, expulsion or suspension of its membership. In the case of suspension, a member shall be automatically reinstated to membership in FINRA at the termination of the suspension period.
      (b) A member shall be considered as a non-member of FINRA from the date of acceptance by FINRA of any resignation of such member.
      Adopted by SR-FINRA-2014-037 eff. Aug. 24, 2015.

      Selected Notice: 15-07.