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

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.

Related Documents: 

DateTitleFormat - Size
4/17/2015Attachment to Regulatory Notice 13-02PDF - 37.08 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: 
DateCommenterFormat - Size
1/7/2013William EddePDF - 31.49 KB
1/7/2013Glenn TaylorPDF - 44.34 KB
1/7/2013Capstone Financial Advisors, Inc.PDF - 45.1 KB
1/8/2013Ruchin & Associates, LLCPDF - 65.69 KB
1/8/2013Warren BischoffPDF - 15.79 KB
1/8/2013Carri Degenhardt BurkePDF - 12.88 KB
1/9/2013Plexus Consulting Group, LLCPDF - 26.27 KB
1/10/2013David GompertPDF - 11.19 KB
1/11/2013Arthur W. Wood Company, Inc.PDF - 11.71 KB
1/11/2013Abel/Noser Corp.PDF - 22.99 KB
1/11/2013Doug NoblePDF - 56.12 KB
1/15/2013Mohini SinghPDF - 10.88 KB
1/16/2013The Securities Industry Professional AssociationPDF - 287.12 KB
1/20/2013Eric ShowalterPDF - 11.67 KB
1/24/2013J W Korth & CompanyPDF - 81.7 KB
1/27/2013OuterSales LLCPDF - 52.38 KB
1/28/2013Steiner & LiboPDF - 10.78 KB
1/30/2013Herskovits PLLCPDF - 94.03 KB
1/30/2013JGHellerPDF - 172.41 KB
1/30/2013Taylor English Duma LLPPDF - 346.73 KB
2/4/2013Midwestern Securities Trading Company, LLCPDF - 14.41 KB
2/11/2013Mark Elzweig Company, LtdPDF - 25.18 KB
2/15/2013Advanced Practice Advisors, RIAPDF - 106.82 KB
2/21/2013Summit Equities, Inc.PDF - 63.82 KB
2/22/2013Spartan Securities Group LtdPDF - 25.83 KB
2/27/2013Smith MoorePDF - 28.74 KB
2/27/2013NPB Financial Group, LLCPDF - 50.79 KB
2/28/2013Form Letter for Comments to Regulatory Notice 13-02PDF - 23.12 KB
2/28/2013Whitehall-Parker Securities, Inc.PDF - 46.05 KB
2/28/2013Oppenheimer & Co, Inc.PDF - 237.51 KB
2/28/2013Morgan Wilshire Securities, Inc.PDF - 47.92 KB
3/1/2013Cornell University Law SchoolPDF - 209.73 KB
3/1/2013NAIFAPDF - 35.92 KB
3/1/2013Janney Montgomery Scott LLCPDF - 67.15 KB
3/3/2013Cutter & Company, Inc.PDF - 56.12 KB
3/3/2013Janney Montgomery Scott LLCPDF - 38.16 KB
3/5/2013Capstone Advisory GroupPDF - 89.92 KB
3/5/2013NASAAPDF - 25.74 KB
3/5/2013Scott SmithPDF - 12.01 KB
3/5/2013Summit Brokerage Services, Inc.PDF - 61.34 KB
3/5/2013Public Investors Arbitration Bar AssociationPDF - 1.74 MB
3/5/2013Ameriprise FinancialPDF - 73.21 KB
3/5/2013SIFMAPDF - 57.59 KB
3/5/2013HD VEST Investment ServicesPDF - 48.42 KB
3/5/2013AIG Advisor Group, Inc.PDF - 134.7 KB
3/5/2013Commonwealth Financial NetworkPDF - 788 KB
3/5/2013Bond Dealers of AmericaPDF - 228.25 KB
3/5/2013Wells Fargo Advisors, LLCPDF - 268.47 KB
3/6/2013Edward JonesPDF - 46.64 KB
3/5/2013Merrill LynchPDF - 639.59 KB
3/5/2013Lincoln InvestmentPDF - 116.53 KB
3/5/2013Wedbush Securities, Inc.PDF - 37.7 KB
3/5/2013Financial Services InstitutePDF - 144.32 KB
3/5/2013Lax & Neville LLPPDF - 112.43 KB
3/5/2013UBS Financial Services, Inc.PDF - 233.88 KB
3/5/2013Sutherland Asbill & Brennan LLPPDF - 609.42 KB
3/5/2013Stifel Financial Corp.PDF - 72.2 KB
3/5/2013Gehring & Satriale LLCPDF - 159.48 KB
3/5/2013The University of Miami School of LawPDF - 746.37 KB
3/5/2013C. LaBastille ConsultingPDF - 62.36 KB
3/5/2013MarketCounsel, LLCPDF - 42.72 KB
3/6/2013Brent A. Burns, LLCPDF - 72.35 KB
3/6/2013Cetera Financial Group, Inc.PDF - 347.33 KB
3/8/2013Morgan Stanley Wealth ManagementPDF - 369.81 KB
3/8/2013Jean Maria ArrigoPDF - 38.51 KB
3/11/2013LPL Financial Corp.PDF - 39.16 KB