Proposed Rule Change to Amend FINRA Rule 0150 (Application of Rules to Exempted Securities Except Municipal Securities)

Financial Industry Regulatory Authority, Inc. (“FINRA”) is filing with the Securities and Exchange Commission (“SEC” or “Commission”) a proposed rule change to amend paragraph (c) of FINRA Rule 0150 (Application of Rules to Exempted Securities Except Municipal Securities) to clarify the application of specified FINRA rules to transactions in, and business activities relating to, exempted securities, including government securities (other than municipal securities).2 The proposed rule change would also amend Capital Acquisition Broker (“CAB”) Rule 015 (Application of Rules to Municipal Securities) to more closely track the text of FINRA Rule 0150, and for consistency with the revisions to FINRA Rule 0150 made pursuant to this rule filing.