FINRA Proposes Broker Disclosure Statement for Retail Investors

more+
less-

The Financial Industry Regulatory Authority (FINRA) issued a concept release requesting comment on a proposal requiring that member firms provide new retail customers with a written disclosure statement that details the types of brokerage accounts and services the firm provides to retail customers and the conflicts associated with such services. A member firm would be required to provide the disclosure document to the retail customer at or prior to commencement of the business relationship. According to the release, the proposal anticipates future rule-making by the Securities and Exchange Commission (SEC) to satisfy mandates in the Dodd-Frank Wall Street Reform and Consumer Protection Act that the SEC study the obligations of broker-dealers and investment advisers, undertake rule-making to establish a fiduciary duty for broker-dealers and facilitate simple and clear disclosures of material conflicts by broker-dealers and investment advisers.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Michael Wible | Attorney Advertising

Written by:

more+
less-

Michael Wible on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×