Finra board to tackle broker comp rule next week

Issue criticized by brokers back on agenda after July bump

Sep 11, 2013 @ 8:17 pm

By Mark Schoeff Jr.

finra, compensation, broker, brokerage
+ Zoom

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.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Dynasty's Penney: How to stay ahead of the curve

With rapid evolution, financial advisers stand at a unique crossroads. Dynasty's Shirl Penney offers some simple strategies to remain a step ahead of the competition.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Interns will take on several roles at advisory firms this summer

College students are helping with client prep, firm visioning and long-term projects, among other duties.

10 funds with largest 3-year outflows

Even well-managed funds that have beaten the S&P 500’s 10.1% average annual gain have watched investors flee.

Wirehouse training programs are back

At one time, major brokerage houses ran large, expensive training programs for thousands of young brokers, and now it looks as if they are about to return to that model.

New military pension rules need financial advisers to step up and serve

Matching defined contribution plan expected to see more money, more need for sound advice.

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print