FINRA Drops Broker Compensation Disclosure

Jun 23, 2014Megan Leonhardt

The Financial Industry Regulatory Authority has withdrawn its recruiting bonus disclosure proposal from the Securities Exchange Commission. The rule would have required brokers to disclose the financial incentives they receive when moving firms.

FINRA filed the withdrawal notice with the SEC on Friday. In a statement Monday, FINRA’s spokesman George Smaragdis said the regulator’s decision was due, in part, to the rigid timelines imposed by Dodd-Frank in which the SEC must act on a proposal. The proposal generated 184 comment letters and FINRA did not believe it could fully address the comments within those time frames.

via FINRA Drops Broker Compensation Disclosure | Legal content from WealthManagement.com.