Federal Register #SR FINRA2026007

SEC Notice of Proposed Rule Change to Exempt Specified Collective Trust Funds from Certain FINRA Rules

This notice from the Securities and Exchange Commission (SEC) addresses a proposed rule change by the Financial Industry Regulatory Authority, Inc. (FINRA): - The proposal seeks to exempt specified collective trust funds (CTFs) from FINRA Rules 5130 and 5131(b) - These rules restrict the purchase and sale of initial public offerings (IPOs) and new issue allocations - The exemption applies to CTFs not formed or maintained to allow restricted persons to invest in new issues - A previously proposed condition requiring a minimum number of plan participants has been removed - The SEC is soliciting public comments and will determine whether to approve or disapprove the rule change, as modified by Partial Amendment No. 1 - No products, services, or commercial OEMs are involved in this notice; only regulatory organizations (SEC, FINRA) are mentioned

Description

The Securities and Exchange Commission (SEC) has filed a notice regarding a proposed rule change by the Financial Industry Regulatory Authority, Inc. (FINRA). The proposed rule change aims to exempt certain collective trust funds (CTFs) from specific FINRA rules related to initial public offerings and new issue allocations and distributions. The exemption would apply to CTFs not formed or maintained for the specific purpose of permitting restricted persons to invest in new issues, thereby expanding access to IPOs through regulated pooled investment vehicles. The SEC is soliciting comments and instituting proceedings to determine whether to approve or disapprove the proposed rule change as modified by Partial Amendment No. 1.

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