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BRAEDEN ANDERSON

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We provide authoritative analysis on securities and commodities regulation, SEC and FINRA enforcement, and legal developments affecting crypto, digital assets, fintech, and financial services, authored by Braeden Anderson.

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FINRA Strengthens Borrowing and Lending Rules: Key Amendments to Rule 3240 Effective April 2025

The Financial Industry Regulatory Authority (FINRA) has adopted significant amendments to Rule 3240, which governs borrowing and lending arrangements between registered persons and their customers. These updates, effective April 28, 2025, are designed to reinforce the general prohibition against such arrangements and introduce several key modifications, including stricter notice and approval requirements, a modernized definition of “immediate family,” and narrower exceptions for personal and business relationships.

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