FINRA adopted rule amendments that eliminate certain requirements applicable to research reports on "covered investment funds," in accordance with the Fair Access to Investment Research Act of 2017 ("FAIR Act").
As previously reported, the SEC adopted a rule, pursuant to the FAIR Act, to establish a safe harbor for unaffiliated broker-dealers participating in the securities offering of a covered investment fund to publish research on the fund. For this purpose, a "covered investment fund" includes specified SEC-registered investment companies business development companies and exchange-traded funds.
The FINRA amendments are as follows:
- FINRA Rule 2241 ("Research Analysts and Research Reports") to eliminate the "quiet period" restrictions on publishing research reports or making public appearances regarding covered investment funds.
- FINRA Rule 2210 ("Communications with the Public") to establish a filing exclusion for investment research reports on covered investment funds that are covered by the SEC's rules under the FAIR Act.
The amendments to FINRA Rules 2210 and 2241 became effective on August 16, 2019.
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