SEC Adopts Amendments to Exemption From National Securities Association Membership

The Securities and Exchange Commission today adopted rule amendments that narrow the exemption from Section 15(b)(8) of the Securities Exchange Act of 1934, which requires any broker or dealer registered with the Commission to become a member of a national securities association unless the broker or dealer effects transactions in securities solely on an exchange of which it is a member. The Financial Industry Regulatory Authority Inc. (FINRA) currently is the only registered national securities association. "Some of today’s broker-dealers continue to rely on an exemption from national securities association registration that’s older than the cell phone era," said SEC Chair Gary Gensler.