FSI Announces Plan To Campaign Against FINRA's Bonus Disclosure Rule

Wednesday, January 30, 2013 07:38
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FSI Announces Plan To Campaign Against FINRA's Bonus Disclosure Rule

The Financial Services Institute (FSI) is about to launch a campaign against FINRA’s proposed rule mandating signing bonus disclosure.
 
FINRA’s proposed rule would require advisors to disclose for one year after-the-fact any recruiting bonus over $50,000 they received for changing firms.

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FSI will argue that the $50,000 threshold is arbitrary and that the rule also fails to distinguish signing bonuses from automated client account transfer fees.
 
The types of bonus compensation cited by RN 13 02 includes signing bonuses, upfront or backend bonuses, loans, accelerated payouts, and transition assistance and similar arrangements.
 
FSI says the FINRA rule also overlooks other types of compensation such as retention bonuses that may also present some form of conflict of interest.
 
RN 13 02 is out for comment until March 5.

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