Interpretive Letter
Categories: Regulations
Interpretive letters are like interpretive dance, but in written form. They’re basically how financial regulatory agencies (like the SEC or FINRA, for example) interpret a specific law or regulation as it pertains to a particular organization or situation.
They’re not making law here—that’s Congress’s job—but a new and fresh interpretation of an old regulation can change the way financial institutions do business, so they’re still kind of a big deal.