FINRA Advances New Broker Bonus Disclosure Rule

Hat Tip

Finra has sent a new broker bonus disclosure to the SEC for approval. Surprisingly, it’s eminently sensible. The proposal promotes exactly the kind of discussion that advisors routinely have with their clients when they change firms. Advisors typically outline the merits of their new platform with clients as well as any new fee structures. If there are any issues in the transfer of client accounts, most advisors have researched these well in advance of a move and review them with clients as well. It’s hard to imagine that investors will be surprised to learn that their advisor received financial incentives for the move. After all, would they want their financial lives guided by a dimwit who joined a new firm for free?

Photo: Robert Hruzek

About Mark Elzweig

I am an executive search recruiter with an inside track on financial advisors, the asset management industry, and Wall Street. My work has appeared in numerous publications including On Wall Street,AdvisorOne, and Fund Fire. Journalists regularly seek me out, so you catch my bon mots in The Wall Street Journal, Research Magazine, Reuters, and more. You can follow me on Twitter @elzweig or you can reach me directly at 212-685-7070 or elzweig@elzweig.com.
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