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.
About Howard Diamond
Chief Operating Officer and General Counsel – A legal and business background combined with over a decade of experience in the wealth advisory space. Already a successful lawyer and litigator, the growth of Diamond Consultants presented a new career opportunity for Howard in 2005. Learn more...
Recent News & Articles
- Should FAs Be Tested for Cognitive Decline?
- The Path to Independence: 6 Key Elements to Consider Before Starting Your Journey
- UBS Comp Changes Make It Harder to Battle Asset Outflows–Analysis
- How Cresset Became a $27 Billion Wealth Manager in Under Five Years by Recruiting Top Private Bankers and Aggressive M&A
- Edward Jones Opens Multi-FA Office in Seattle