Pursuits
Brokers Must Disclose Bonuses to Clients in Finra Proposal
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Brokers who switch firms would be compelled to tell customers about any recruiting bonuses and other incentives received under rules proposed by industry regulators to protect clients from conflicts of interest.
The Financial Industry Regulatory Authority’s 20-member board of governors voted yesterday to put the proposal out for comment, according to a memo from Chairman Richard Ketchum posted on the group’s website. Conflicts may arise if the new firm’s payments encourage brokers to push products to clients that aren’t needed or suitable.