FINRA Requests Comment on a Proposed Rule to Require Disclosure of Conflicts of Interest Relating to Recruitment Compensation Practices

FINRA seeks comment on a proposed rule that would require specific disclosure by the recruiting member firm of the financial incentives that a representative receives as part of his or her relationship with the new firm. The recruiting member firm would be required to provide the disclosure before a former retail customer of the representative makes a final determination to transfer an account to the new firm.

Cross-Reference(s): FINRA Rule 4512 [Customer Account Information].

View Notice in full here (links externally to FINRA website).