July 28, 2014
July 25, 2014
Financial Industry Regulatory Authority "FINRA" Requests Comment on Proposed Rule Requiring Disclosure of Conflicts of Interest in Recruitment Incentives
Member firms often offer financial incentives when recruiting registered representatives. The Financial Industry Regulatory Authority has stated that it believes such financial incentives raise conflicts of interest that often are not disclosed when registered representatives ask their former customers to transfer to their new firm. Thus, FINRA is seeking comment on a proposed rule that would require a recruiting member firm to make detailed disclosure of the recruitment incentives offered to a registered representative who has been recruited. Comments must be submitted to FINRA by March 5.
FINRA Regulatory Notice 13-02 is available here.
<span class="advertise"> Advertisement </span>
- SEC Obtains Cease and Desist Order, Fine Regarding Foreign Corrupt Practices Act Violations by Gun Maker
- The “Accredited Investor” Question Re: Securities Regulation
- The SEC Has Discovered Its Whistleblower Program
- SEC Settles Third-Party Insider Trading Claim Against New York Investor Relations Executive
- SEC Issues Guidance on Proxy Voting
- SEC Approves FINRA Rule Limiting Expungement