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