FINRA has withdrawn from the SEC a proposed rule that would have forced advisors to disclose to clients recruitment bonuses in excess of $100,000, reports WealthManagement.com.
“FINRA filed the withdrawal notice with the SEC on Friday. No reason was provided in the filing, and FINRA did not immediately respond to a request for comment Monday,” notes the report.
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Washington, D.C.-based Financial Services Institute released the following statement:
“Many of our members have concerns regarding FINRA’s recruitment compensation disclosure proposal, including a lack of transparent cost-benefit analysis. Should FINRA choose to re-propose the rule at a later date, we encourage them to conduct a thorough cost-benefit analysis of the rule, share the results with the industry and carefully assess the proposal’s impact on firms, financial advisors and investors.”