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
