FINRA Rule 5121

FINRA Rule 5121 governs the approval process for issuing research reports about companies where a member firm has a significant investment, ownership, or financial interest. Its purpose is to ensure transparency and prevent conflicts of interest: if a firm or its employees hold substantial stakes or financial ties to a company, they must obtain prior approval from a designated supervisor before publishing research about that company. This helps safeguard the objectivity of research reports and maintains fair disclosure standards, protecting investors from biased or conflicted information.