More On Legal & Compliancefrom The Advisor's Professional Library
- Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times. Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
A revised plan to require that brokers’ recruitment compensation be disclosed when they switch firms will be considered at the Financial Industry Regulatory Authority’s Sept. 19 board meeting.
FINRA CEO Richard Ketchum said in late May that FINRA’s broker bonus disclosure plan would be brought up at the self-regulator’s July 11 board meeting. However, a FINRA spokesperson said in mid-July that “due to scheduling considerations,” the rule had been pushed to a later date.
FINRA said late Wednesday that disclosures related to recruitment practices and account transfers would be one of the four rulemaking items discussed at the meeting.
“The board will consider an updated proposal to require disclosure of compensation a registered representative receives in connection with changing firms and other important considerations for a customer deciding whether to follow the representative to the new firm."