Regulation
Regulatory Notice 13-02
FINRA Requests Comment on a Proposed Rule to Require Disclosure of Conflicts of Interest Relating to Recruitment Compensation Practices
Comment Period Expired: March 5, 2013
Executive Summary
Many member firms offer significant financial incentives to recruit registered representatives to join their firms, yet these compensation arrangements are not disclosed to customers when they are asked to transfer their accounts to a representative’s new firm. To address conflicts of interest relating to recruitment compensation practices, FINRA seeks comment on a proposed rule that would require specific disclosure by the recruiting member firm of the financial incentives a representative receives as part of his or her relationship with the new firm. The recruiting member firm would be required to provide the disclosure before a former retail customer of the representative makes a final determination to transfer an account to the new firm.
The text of the proposed rule can be found at www.finra.org/notices/13-02.
Questions concerning this Notice should be directed to:
- Philip Shaikun, Associate Vice President, Office of General Counsel (OGC), at (202) 728-8451; and
- Erika Lazar, Assistant General Counsel, OGC, at (202) 728-8013.
This letter was submitted by 503 individuals. Please contact us to request a list of commenters.
| View Full Notice | PDF 154 KB |
The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.
| Comments By | Date Received |
|---|---|
| Capstone Financial Advisors, Inc. (PDF 46 KB) | 1/7/2013 |
| Glenn Taylor (PDF 45 KB) | 1/7/2013 |
| William Edde (PDF 32 KB) | 1/7/2013 |
| Carri Degenhardt Burke (PDF 13 KB) | 1/8/2013 |
| Warren Bischoff (PDF 16 KB) | 1/8/2013 |
| Ruchin & Associates, LLC (PDF 66 KB) | 1/8/2013 |
| Plexus Consulting Group, LLC (PDF 26 KB) | 1/9/2013 |
| David Gompert (PDF 11 KB) | 1/10/2013 |
| Doug Noble (PDF 56 KB) | 1/11/2013 |
| Abel/Noser Corp. (PDF 23 KB) | 1/11/2013 |
| Arthur W. Wood Company, Inc. (PDF 12 KB) | 1/11/2013 |
| Mohini Singh (PDF 10 KB) | 1/15/2013 |
| The Securities Industry Professional Association (PDF 287 KB) | 1/16/2013 |
| Eric Showalter (PDF 12 KB) | 1/20/2013 |
| J W Korth & Company (PDF 82 KB) | 1/24/2013 |
| OuterSales LLC (PDF 52 KB) | 1/27/2013 |
| Steiner & Libo (PDF 11 KB) | 1/28/2013 |
| Herskovits PLLC (PDF 94 KB) | 1/30/2013 |
| JGHeller (PDF 172 KB) | 1/30/2013 |
| Taylor English Duma LLP (PDF 347 KB) | 1/30/2013 |
| Midwestern Securities Trading Company, LLC (PDF 14 KB) | 2/4/2013 |
| Mark Elzweig Company, Ltd (PDF 25 KB) | 2/11/2013 |
| Advanced Practice Advisors, RIA (PDF 107 KB) | 2/15/2013 |
| Summit Equities, Inc. (PDF 64 KB) | 2/21/2013 |
| Spartan Securities Group Ltd (PDF 26 KB) | 2/22/2013 |
| NPB Financial Group, LLC (PDF 51 KB) | 2/27/2013 |
| Smith Moore (PDF 29 KB) | 2/27/2013 |
| Morgan Wilshire Securities, Inc. (PDF 48 KB) | 2/28/2013 |
| Oppenheimer & Co, Inc. (PDF 238 KB) | 2/28/2013 |
| Whitehall-Parker Securities, Inc. (PDF 47 KB) | 2/28/2013 |
| Janney Montgomery Scott LLC (PDF 68 KB) | 3/1/2013 |
| NAIFA (PDF 36 KB) | 3/1/2013 |
| Cornell University Law School (PDF 210 KB) | 3/1/2013 |
| Janney Montgomery Scott LLC (PDF 39 KB) | 3/3/2013 |
| Cutter & Company, Inc. (PDF 57 KB) | 3/3/2013 |
| Capstone Advisory Group (PDF 90 KB) | 3/5/2013 |
| Wells Fargo Advisors, LLC (PDF 269 KB) | 3/5/2013 |
| Bond Dealers of America (PDF 229 KB) | 3/5/2013 |
| Commonwealth Financial Network (PDF 788 KB) | 3/5/2013 |
| AIG Advisor Group, Inc. (PDF 135 KB) | 3/5/2013 |
| HD VEST Investment Services (PDF 238 KB) | 3/5/2013 |
| SIFMA (PDF 58 KB) | 3/5/2013 |
| Ameriprise Financial (PDF 74 KB) | 3/5/2013 |
| Public Investors Arbitration Bar Association (PDF 1,779 KB) | 3/5/2013 |
| Summit Brokerage Services, Inc. (PDF 62 KB) | 3/5/2013 |
| Scott Smith (PDF 13 KB) | 3/5/2013 |
| NASAA (PDF 32 KB) | 3/5/2013 |
| MarketCounsel, LLC (PDF 43 KB) | 3/5/2013 |
| C. LaBastille Consulting (PDF 63 KB) | 3/5/2013 |
| The University of Miami School of Law (PDF 747 KB) | 3/5/2013 |
| Gehring & Satriale LLC (PDF 160 KB) | 3/5/2013 |
| Stifel Financial Corp. (PDF 73 KB) | 3/5/2013 |
| Sutherland Asbill & Brennan LLP (PDF 610 KB) | 3/5/2013 |
| UBS Financial Services, Inc. (PDF 234 KB) | 3/5/2013 |
| Lax & Neville LLP (PDF 113 KB) | 3/5/2013 |
| Financial Services Institute (PDF 145 KB) | 3/5/2013 |
| Wedbush Securities, Inc. (PDF 38 KB) | 3/5/2013 |
| Lincoln Investment (PDF 117 KB) | 3/5/2013 |
| Merrill Lynch (PDF 640 KB) | 3/5/2013 |
| Edward Jones (PDF 47 KB) | 3/6/2013 |
| Cetera Financial Group, Inc. (PDF 348 KB) | 3/6/2013 |
| Brent A. Burns, LLC (PDF 73 KB) | 3/6/2013 |
| Morgan Stanley Wealth Management (PDF 370 KB) | 3/8/2013 |
| Jean Maria Arrigo (PDF 39 KB) | 3/8/2013 |
| LPL Financial Corp. (PDF 40 KB) | 3/11/2013 |