Mindy Diamond Quoted
By Brooke Southall
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.
The rulemaker for stockbrokers is considering this ostensibly because brokers signing the deals may be motivated more by their own interests than those of clients — and clients may deserve to have more information at their fingertips to make that determination for themselves.
The effects of such new rules are not welcome news to Mindy Diamond, president and chief executive of Diamond Consultantsof Chester, N.J.
“It would be terrible,” she says. “It would be imposing a change on advisors who mostly do the right thing. [Bonuses] do nothing to affect how they serve their clients.”
Diamond does, however, allow that such a new reg could also have a chilling effect on her recruiting practice.
