Finra board to tackle broker comp rule next week

Issue criticized by brokers back on agenda after July bump

By Mark Schoeff Jr.

Sep 11, 2013 @ 8:17 pm (Updated 8:24 pm) EST

finra, compensation, broker, brokerage

The Financial Industry Regulatory Authority Inc. next week plans to consider a revised proposal that would require brokers to disclose the compensation they receive when switching firms.

The item is on the agenda for the Sept. 19 meeting of the Finra board. The topic was originally going to be addressed at the board's July meeting but was bumped off the schedule.

Under its original proposal in January, Finra would require a broker to disclose incentives – including signing bonuses, upfront or back-end bonuses, loans, accelerated payouts and transition assistance, among other arrangements – to anyone they solicit for one year following their transfer to a new firms. The rule does not apply to incentives totaling less than $50,000.

The idea has drawn criticism from the brokerage industry.

  @IN Wire

Apr 23 10:09AM
Sweet hometown #Chicago celebrates the friendly confines of #Wrigley Field's 100th anniversary. Remember Ernie Banks? http://t.co/wzou83sXZg
Apr 23 10:00AM
Last Chance to Nominate an Adviser for a Community Leadership Award! @investinothers #CLA2014 http://t.co/j4U2QpajF5

Most Watched Video

7:12The 2 biggest factors driving growth in active ETFs

Ugo W. Egbunike Dir. Of Business Development, ETF.com Greg Crawford Deputy Editor, InvestmentNews

Video Spotlight
1:47People are Living Longer. Good News or Bad News?

Sponsored by Oppenheimer Funds Inc.