Louis Diamond Quoted – By Mark Schoeff Jr., InvestmentNews – Brokers leaving firms could more easily hang on to their clients and avoid being disparaged by their former employers under recent Finra guidance. The guidance will also clarify for clients their options when a broker leaves, according to Louis Diamond, executive vice president of Diamond Consultants, a recruiting firm.
Howard Diamond Quoted – By Miriam Rozen, Financial Advisor IQ – In less than two months — on Oct.1 — when Finra is scheduled to launch its new streamlined competency exams, get ready for a dramatic change. For the first time in the history of the industry self-regulator, anyone more than 18 years old — including students and aspiring broker-dealer representatives, even if they have not yet been hired by financial firms — may take a Finra entrance exam. No firm affiliation is necessary.
Howard Diamond Quoted – By William Sprouse, OnWallStreet – A FINRA arbitration panel ruled a Wells Fargo adviser and the wirehouse liable for $1.1 million in damages over allegations he stole client data from UBS. Howard Diamond, managing director and general counsel with adviser recruiting firm Diamond Consultants, says the number of disputes between advisers and their former employers has fallen since the protocol was enacted in 2004. However, conflicts still arise.
Mindy Diamond Quoted – By Alex Padalka, Financial Advisor IQ – 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.
Mindy Diamond Quoted – By Mason Braswell, InvestmentNews – Finra has withdrawn a controversial proposal that would have required brokers to tell clients about recruitment incentives they receive in excess of $100,000. Industry recruiter Mindy Diamond of Diamond Consultants said that the proposal would likely have been a “non-issue” as advisers would have been able to find ways of disclosing the information to clients without disrupting their transition.
By Mindy Diamond, WealthManagement.com – Next week, the board of the Financial Industry Regulatory Authority (FINRA) plans to review a controversial proposal that, simply put, would require brokers to disclose the incentive they receive when switching firms (if the incentive totals more than $50,000). While this topic has been bumped from FINRA’s agenda in the past, I believe that a ruling is imminent and will eventually pass. If it does, it could have far-reaching implications for all advisors who change firms in the next several years and beyond.
Mindy Diamond Quoted – By Brooke Southall, RIABiz – FINRA is set to consider new rules that would lift the curtain on the terms and conditions of massive payoffs made by wirehouses to convince brokers to make a lateral move from another wirehouse.
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