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.

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