The Financial Industry Regulatory Authority (FINRA) on Wednesday requested comment on its rules governing the participation of brokerage firms in capital raising, as part of a continuing effort to modernize its regulation of those activities while maintaining important protections for investors.
FINRA also requested comment on proposed amendments to rules for underwriting arrangements, and its rules for capital acquisition brokers and funding portals.
“A vibrant capital-raising process supports the growth of the large and small businesses that create jobs and strengthen the economy. Broker-dealers perform a critical role in that process,” says Robert Cook, FINRA president and CEO, in a statement.
“As the environment for capital raising evolves, it is essential that we continue to assess how regulation can best facilitate capital formation on a strong foundation of investor protection and market integrity,” he adds.
The requests for comment are part of FINRA’s effort to modernize its rules and operations, known as the FINRA360 initiative.
Comments are due by May 30.