2026-14105NoticeWallet

Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Partial Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Partial Amendment No. 1, to Exempt Specified Collective Trust Funds From FINRA Rules 5130 (Restrictions on the Purchase and Sale of Initial Public Offerings) and 5131(b) (New Issue Allocations and Distributions)

Published Date: 7/14/2026

Notice

Summary

FINRA wants to change the rules so certain collective trust funds don’t have to follow restrictions on buying and selling new stock offerings. This affects investors using these funds and could make it easier and faster for them to get in on new stock deals. The SEC is reviewing the change and will decide by July 9, 2026, whether to approve it, which could impact how money flows in these investments.

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

CTFs May Be Exempted from IPO Rules

FINRA proposes to exempt specified collective trust funds (CTFs) from FINRA Rules 5130 and 5131(b), which restrict purchases and allocations of initial public offerings (IPOs). If approved, investors who hold CTFs in employer-sponsored retirement plans could gain expanded access to IPOs through those pooled funds.

1,000-Participant Test Removed

FINRA initially proposed that a CTF relying on the exemption must have investments from 1,000 or more plan participants and beneficiaries, but in Partial Amendment No. 1 FINRA removed that 1,000-participant condition. Removing that threshold would broaden the set of CTFs eligible for the exemption from the IPO restrictions.

Exemption Limited by 'Not Formed to Circumvent'

The proposed exemption would apply only to CTFs that were not formed or maintained for the specific purpose of permitting restricted persons to invest in new issues. Funds formed for that specific purpose would not qualify for the exemption.

Your PRIA Score

Score Hidden

Personalized for You

How does this regulation affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Key Dates

Published Date
7/14/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
Source: View HTML

Related Federal Register Documents

Previous / Next Documents

Back to Federal Register