Brokers would be compelled to tell customers about recruiting bonuses and other compensation they get when moving to a new firm under rules proposed by industry regulators to protect clients from conflicts of interest.
The Financial Industry Regulatory Authority’s 20-member board of governors voted Thursday to put the proposal out for comment, a person with knowledge of the meeting said. The disclosure would alert clients to incentives their broker received to sign with the new company and lure their business, according to brokers briefed on the plan by Finra staff.
