Federal Register #SR-FINRA-2026-019

FINRA Proposed Rule Change to Amend Rule 4522 for Alternative Investments

This notice announces a proposed rule change by the Financial Industry Regulatory Authority (FINRA) to amend Rule 4522, impacting broker-dealer compliance for alternative investments. - Government buyer: - Securities and Exchange Commission (SEC) - Financial Industry Regulatory Authority, Inc. (FINRA) - OEMs and vendors: - No OEMs or vendors are mentioned; this is a regulatory notice, not a procurement opportunity - Products/services requested: - No products or services are requested - No part numbers or quantities provided - Unique or notable requirements: - Proposed amendment to FINRA Rule 4522 - Exempts uncertificated investments in unregistered investment funds from monthly position statement requirements - Aligns with recent SEC staff no-action relief - Intended to reduce compliance burdens for carrying and clearing broker-dealer members - Maintains investor protections - Applies to alternative investments represented by capital account balances rather than shares or units - No procurement activity or contract value is associated with this notice

Description

This notice pertains to a proposed rule change filed by FINRA to amend Rule 4522 concerning periodic security counts, verifications, and comparisons. The amendment aims to simplify position statement and reconciliation requirements for certain alternative investments, specifically excepting uncertificated investments in unregistered investment funds from monthly position statement requirements. The proposal aligns with recent SEC staff no-action relief and seeks to reduce compliance burdens while maintaining investor protections.

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