{"id":460,"date":"2014-04-19T00:00:00","date_gmt":"2014-04-19T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/04\/the_brokerage_industry_respond"},"modified":"2021-12-08T10:59:57","modified_gmt":"2021-12-08T16:59:57","slug":"the-brokerage-industry-respond","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/the-brokerage-industry-respond\/","title":{"rendered":"The Brokerage Industry Responds to FINRA\u2019s Broker Compensation Proposal"},"content":{"rendered":"<p>A number brokerage firms, including Morgan Stanley Wealth Management, LPL Financial (LPLA), and Stifel Nicolaus (SF) have responded to the Securities and Exchange Commission\u2019s request for comments about FINRA-proposed rule about broker compensation. Proposed rule 2243 would require greater disclosure about the financial incentives that is offered to representatives who change jobs. The information would need to be conveyed to the self-regulatory agency.<\/p>\n<p>Under Rule 2243, clients who go with a broker to a new firm would have to be apprised of any recruiting compensation the representative gets if the amount is $100,000 or greater. This would include bonuses at the front and back ends, signing bonuses, transition assistance, and accelerated payouts. The disclosure would be applicable for one year after the representative begins association or employment with the new broker-dealer.<\/p>\n<p>The rule also would apply if the brokerage firm expects total compensation paid during the representative\u2019s first year of association to result in a $100,000 or 25% increase in compensation from the year prior. Firms also would have to notify FINRA about such a rise in compensation. (The SRO wants to use the data to look for signs of potentially related sales abuses.)<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/the-brokerage-industry-respond\/\"  title=\"Continue Reading The Brokerage Industry Responds to FINRA\u2019s Broker Compensation Proposal\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A number brokerage firms, including Morgan Stanley Wealth Management, LPL Financial (LPLA), and Stifel Nicolaus (SF) have responded to the Securities and Exchange Commission\u2019s request for comments about FINRA-proposed rule about broker compensation. Proposed rule 2243 would require greater disclosure about the financial incentives that is offered to representatives who change jobs. The information would [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3739,3740],"tags":[],"class_list":["post-460","post","type-post","status-publish","format-standard","hentry","category-finra","category-miscellaneous"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Brokerage Industry Responds to FINRA\u2019s Broker Compensation Proposal &#8212; Investor Lawyers Blog &#8212; April 19, 2014<\/title>\n<meta name=\"description\" content=\"A number brokerage firms, including Morgan Stanley Wealth Management, LPL Financial (LPLA), and Stifel Nicolaus (SF) have responded to the Securities and &#8212; April 19, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/the-brokerage-industry-respond\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The Brokerage Industry Responds to FINRA\u2019s Broker Compensation Proposal &#8212; 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