FINRA last week released Regulatory Notice 13-02 that proposes to require disclosure of financial incentives (recruiting “bonuses”) paid to financial advisors to change firms. In the Executive Summary to the Notice, FINRA indicates that the purpose of the rule change is “to address conflicts of interest relating to recruitment compensation practices.” As you know, currently financial advisors are not required to disclose the financial incentives they receive when switching from one brokerage to another.
