FINRA Regulatory Notice 13-45: FINRA Reminds Firms of Their Responsibilities Concerning IRA Rollovers

FINRA issued a notice to provide guidance and remind firms of their responsibilities when recommending a rollover or transfer of assets in an employer-sponsored retirement plan to an Individual Retirement Account ("IRA") or when marketing IRAs and associated services. FINRA stated that a broker-dealer's recommendation for an investor to roll over retirement plan assets to an IRA typically involves securities recommendations subject to FINRA rules. Additionally, FINRA reminded members that a firm's marketing of its IRA services also is subject to FINRA rules.

FINRA explained that any recommendation to sell, purchase or hold securities must be suitable for the customer and the information that investors receive must be fair, balanced and not misleading. FINRA noted that reviewing firm practices in this area will be an examination priority in 2014.