In a win for securities brokerages, the Financial Industry Regulatory Authority appears to have abandoned a plan requiring brokers to reveal their signing bonuses to clients when they switch to a new employer, Reuters reports.
As part of a series of rule changes discussed at a meeting on Friday, FINRA’s board of governors authorized the regulator to push for a more lax proposal requiring hiring firms to “provide an educational communication” to broker clients who are thinking about following him or her to the new firm. The communication FINRA has proposed includes a list of suggested questions clients may wish to ask their brokers, such as information about the costs the customer may incur and whether or not the broker will receive bonuses that may influence recommendations to clients.
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