Table of Contents
SERIES 7 | SERIES 24 | FINANCIAL REGULATION COURSES
FINRA Rule 11581 is the final rule of the FINRA Rule 11500 Delivery of Securities with Restrictions subsection — and the structurally simplest of all the standardized-form provisions this dictionary has examined throughout its coverage of the Uniform Practice Code, consisting of a single sentence that locates, rather than reproduces, the standard transfer forms FINRA Rule 11580(a) mandates.
The rule's complete operative text reads: the forms required by Rule 11580 are published in NASD Notice to Members 96-14 (March 1996), pp. 70-75. FINRA Rule 11581 was adopted by SR-NASD-95-53 effective January 29, 1996 — the same adoption date as FINRA Rule 11580 itself — and amended by SR-FINRA-2010-030 effective December 15, 2010. One selected notice is associated — Regulatory Notice 10-49.
FINRA Rule 11581 sits within the 11500 Delivery of Securities with Restrictions subsection of the 11000 Uniform Practice Code as its thirteenth and final rule, immediately following FINRA Rule 11580's transfer of limited partnership securities mandate and immediately preceding FINRA Rule 11600, the series-level marker for the Delivery of Bonds and Other Evidences of Indebtedness subsection.
FINRA Rule 11581's defining characteristic, when considered alongside the standardized forms this dictionary has examined throughout its coverage of the Uniform Practice Code, is what it does not do. FINRA Rule 11130's Supplementary Material .01 reproduced the full text of the two Standard Forms for when, as and if issued/distributed contracts.
FINRA Rule 11210's Supplementary Material .01 reproduced the structure of the Uniform Comparison Form.
FINRA Rule 11360's Supplementary Material .01 reproduced the Uniform Delivery Ticket Form.
FINRA Rule 11550's Supplementary Material .01 reproduced the Uniform Transfer Instruction Form.
FINRA Rule 11571's Supplementary Material .01 reproduced a Sample Certificate and Authorizing Resolution.
FINRA Rule 11574's Supplementary Material .01 reproduced a Sample Limited Partnership Change of Trustee Form.
FINRA Rule 11581, by contrast, reproduces nothing. Its entire operative content is a citation — the forms required by Rule 11580 are published in NASD Notice to Members 96-14 (March 1996), pp. 70-75. Rather than incorporating the forms' content into the FINRA Rulebook itself (whether directly in rule text or in Supplementary Material), FINRA Rule 11581 directs the reader to a specific external publication — a Notice to Members from March 1996, with the forms located at a specific page range (pages 70 through 75) within that notice.
This pointing-rather-than-reproducing structure, while unique among the standardized-form provisions this dictionary has examined, is not arbitrary — it reflects characteristics specific to the limited partnership transfer forms context that distinguish it from the other Uniform Forms.
The other Uniform Forms this dictionary has examined — the Uniform Comparison, Uniform Delivery Ticket, and Uniform Transfer Instruction Form — represent a small, closed set of forms (the 1971 Four Uniform Forms, of which this dictionary has now confirmed three) applicable across the entire range of securities transactions the Uniform Practice Code governs.
These forms' relative simplicity and universal applicability may have made direct reproduction within the FINRA Rulebook's Supplementary Material both practical and valuable — a single form, applicable to virtually every transaction, reproduced once within the rule that establishes it.
The limited partnership transfer forms that FINRA Rule 11580 mandates and FINRA Rule 11581 references, by contrast, address a more specialized context — and the six pages (70 through 75) of Notice to Members 96-14 devoted to these forms suggests they may comprise multiple distinct forms, or forms with more extensive content, than the relatively compact single-page forms this dictionary has examined for the Uniform Comparison, Uniform Delivery Ticket, and Uniform Transfer Instruction Form. Given this dictionary's earlier examination of FINRA Rule 11574's Supplementary Material .01 Sample Limited Partnership Change of Trustee Form — itself a fairly elaborate form with numerous fields for assignor, assignee, partnership, and General Partner information — it is plausible that the full set of limited partnership transfer forms FINRA Rule 11580 mandates encompasses multiple such forms addressing different transfer scenarios (outright sales, gifts, transfers upon death, changes of trustee, and so forth), making a six-page treatment in a dedicated Notice to Members publication a more practical home for these forms than direct reproduction within FINRA Rule 11581's own Supplementary Material.
FINRA Rule 11581's citation to NASD Notice to Members 96-14 (March 1996), pp. 70-75 identifies a specific historical document — a Notice to Members issued by the NASD in March 1996, shortly after FINRA Rule 11580 and FINRA Rule 11581's original adoption effective January 29, 1996 through SR-NASD-95-53. This dictionary has encountered Notice 96-14 once before — in connection with FINRA Rule 11100's amendment history, where this dictionary noted Notice 96-14 as one of FINRA Rule 11100's selected notices, and speculated that Notice 96-14 might have addressed a package of Uniform Practice Code amendments including both FINRA Rule 11100 refinements and FINRA Rule 11580's original adoption.
FINRA Rule 11581's confirmation that Notice 96-14 contains, at pages 70 through 75, the actual limited partnership transfer forms themselves substantiates this earlier speculation directly — Notice 96-14 was indeed a substantial publication addressing multiple aspects of the Uniform Practice Code's 1996 amendments, of sufficient length that a six-page form appendix at pages 70 through 75 would fit within a notice also addressing FINRA Rule 11100 amendments and the substantive adoption of FINRA Rules 11580 and 11581 themselves.
The continued vitality of this 1996 citation — confirmed as still operative on the current FINRA.org page, notwithstanding the rule's intervening 2010 amendment — means that NASD Notice to Members 96-14 functions, nearly three decades after its original publication, as the permanent authoritative source for the limited partnership transfer forms FINRA Rule 11580(a) mandates. A member seeking to comply with FINRA Rule 11580(a)'s standard transfer forms requirement must, per FINRA Rule 11581, look to this specific 1996 Notice to Members publication to find the forms themselves.
FINRA Rule 11581's position as the final rule of the FINRA Rule 11500 subsection — the largest subsection of the entire 11000 Uniform Practice Code, as this dictionary's FINRA Rule 11500 entry established — provides a fitting structural conclusion to this dictionary's examination of that subsection's thirteen entries.
The FINRA Rule 11500 subsection began with FINRA Rule 11510's single-sentence good delivery rule for temporary certificates, proceeded through FINRA Rule 11520's mutilated securities and coupon endorsement framework, FINRA Rule 11530's called and worthless securities provisions, FINRA Rule 11540's governmental documentation and foreign stoppage framework, FINRA Rule 11550's comprehensive assignment and power of substitution framework with its Uniform Transfer Instruction Form, FINRA Rule 11560's ownership transfer indemnification for transfer-books-closed companies, and the FINRA Rule 11570 cluster's four registration-name-specific rules (FINRA Rules 11571 through 11574) — before arriving at FINRA Rules 11580 and 11581's limited partnership transfer framework, the operative expansion of FINRA Rule 11100(a)(5)'s Direct Participation Program exclusion this dictionary anticipated from its earliest entries in this series.
FINRA Rule 11581's brief, citation-only character — in contrast to the elaborate multi-paragraph frameworks of FINRA Rules 11550 and 11574 that preceded it in this dictionary's examination — provides a fitting bookend to this progression. Where FINRA Rule 11510 opened the subsection with the shortest substantive rule in the entire FINRA Rule 11500 subsection (a single sentence establishing a good delivery condition), FINRA Rule 11581 closes the subsection with an equally brief single sentence — but one that, rather than establishing a substantive condition, simply directs the reader to where the substantive content (the forms themselves) can be found.
FINRA Rule 11581 connects to FINRA Rule 11100 — sharing Notice 96-14 as a common selected notice, with this dictionary's examination of FINRA Rule 11581 now substantiating that Notice 96-14 was a substantial 1996 publication addressing multiple Uniform Practice Code matters including both FINRA Rule 11100 refinements and the limited partnership transfer forms FINRA Rule 11581 references. It connects to FINRA Rule 11130's Supplementary Material .01, FINRA Rule 11210's Uniform Comparison Form, FINRA Rule 11360's Uniform Delivery Ticket Form, and FINRA Rule 11550's Uniform Transfer Instruction Form — as points of structural contrast, each of those provisions reproducing its standardized form directly within FINRA Rulebook Supplementary Material, while FINRA Rule 11581 instead cites an external 1996 Notice to Members publication. It connects to FINRA Rule 11571 and FINRA Rule 11574 — whose Supplementary Material .01 sample forms (the Sample Certificate and Authorizing Resolution/Certificate of Incumbency, and the Sample Limited Partnership Change of Trustee Form respectively) provide this dictionary's closest available preview of the kind of form content that the fuller set of limited partnership transfer forms in Notice 96-14, pages 70-75, likely encompasses. And it connects directly and indispensably to FINRA Rule 11580 — the rule immediately preceding it, whose paragraph (a) standard transfer forms mandate FINRA Rule 11581 exists solely to identify the location of.
FINRA Rule 11581 is tested on the Series 7 and Series 24 examinations as the citation rule identifying the published source of the limited partnership transfer forms FINRA Rule 11580(a) mandates — the final rule of the FINRA Rule 11500 subsection, and structurally unique among this dictionary's examined standardized-form provisions for citing rather than reproducing its referenced forms.
The key points to retain are these: FINRA Rule 11581 consists of a single sentence stating that the forms required by FINRA Rule 11580 are published in NASD Notice to Members 96-14 (March 1996), at pages 70 through 75; unlike every other standardized form examined in this dictionary's coverage of the Uniform Practice Code — the FINRA Rule 11130 Standard Forms, the FINRA Rule 11210 Uniform Comparison Form, the FINRA Rule 11360 Uniform Delivery Ticket Form, the FINRA Rule 11550 Uniform Transfer Instruction Form, and the FINRA Rule 11571 and FINRA Rule 11574 sample forms, all reproduced directly within FINRA Rulebook Supplementary Material — FINRA Rule 11581 reproduces no form content, instead directing members to the specific 1996 Notice to Members publication where the forms themselves are published; FINRA Rule 11581 shares Notice 96-14 with FINRA Rule 11100 as a common selected notice, confirming Notice 96-14's character as a substantial 1996 publication addressing multiple Uniform Practice Code matters; and the rule was adopted by SR-NASD-95-53 effective January 29, 1996 — the same adoption date as FINRA Rule 11580 — and amended by SR-FINRA-2010-030 effective December 15, 2010, with one selected notice, 10-49.
