Mindy Diamond Quoted
By Alex Padalka
The SEC has approved a rule from Finra that requires brokers planning to jump ship from their old employer to send “educational communications” to clients that they want to bring along, InvestmentNews writes.
The approved regulation follows a three-year development process of the Finra rule, which was originally intended for brokers to disclose their compensation to clients they hoped to transfer when changing firms, according to InvestmentNews.
Industry resistance to the privacy considerations of such a rule made Finra revise the original proposal, coming out with what broker recruiter Mindy Diamond calls “broker disclosure light,” the publication writes.
“For most quality advisers who have a deep relationship with clients, it will be a non-event,” she said, according to InvestmentNews.