FINRA advances bonus disclosure plan for brokers

January 8, 2013 by Melanie Waddell

FINRA’s proposed rule would require member firms to specifically disclose the financial incentives they give to the representatives they recruit. The recruiting firm would be required to provide the disclosure before the rep’s former customers transfer their accounts to the new firm.

Securities lawyer Patrick Burns says that a “number of FINRA member firms, namely wirehouses, offer significant financial incentives to recruit registered representatives to join their firms, yet these compensation arrangements are not disclosed to customers when they are asked to transfer their accounts to a representative’s new firm.” Click here to read more…

Originally Posted at LifeHealthPro on January 7, 2013 by Melanie Waddell.