In late January, the SEC approved FINRA’s Rule 3230 relating to telemarketing, essentially, adopting FINRA’s proposed rule.

This new rule will remove NYSE Rule 440A and its interpretive material.  However, FINRA Rule 3230 will include several provisions from the NYSE Rule 440A, including, but not limited to, certain caller identification rules.  The SEC also commented that FINRA’s proposed rules are similar to the FTC rules regarding deceptive and/or abusive telemarketing practices.  Currently, FINRA has not announced when this rule will be implemented, but will do so over the next ninety days.

Firms are reminded that it is essential they review their telemarketing procedures to ensure compliance with these rules to avoid FINRA and SEC enforcement action.