The proposal represents a major step in what promises to be a full-scale overhaul of FINRA’s Capital Formation Rules -

On April 12, 2017, the Financial Industry Regulatory Authority, Inc. (FINRA) published Regulatory Notice 17-15 (RN 17-15), requesting public comment on long-awaited and greatly anticipated proposed revisions to FINRA Rule 5110 (Proposed Rule 5110). The rule proposal is an outgrowth of industry discussions and FINRA’s retrospective rule review initiative, which was launched in April 2014 and is intended to ensure that significant FINRA rules are modernized to remain relevant and appropriately designed to achieve their objectives. RN 17-15 was issued along with a companion Regulatory Notice in which FINRA requests comment more generally on the effectiveness and efficiency of all of its rules and programs governing the capital formation process.