Regulatory Notice 24-12

Summary

FINRA has adopted amendments to Rule 3240 (Borrowing From or Lending to Customers) to strengthen the rule’s general prohibition against borrowing and lending arrangements between registered persons and their customers, narrow some existing exceptions to the general prohibition, modernize the “immediate family” definition, and enhance the notice and approval requirements related to permissible arrangements. The amendments will become effective on April 28, 2025.

For more information click here: https://www.finra.org/rules-guidance/notices/24-12

Questions concerning this Notice should be directed to:

• Ilana Herscovitz Reid, Associate General Counsel, Office of General Counsel, at (202) 728-8268 or by email; or
• Carrie Jordan, Principal Counsel, Office of General Counsel, at (212) 858-4210 or by email.