FINRA sends broker bonus plan to SEC for approval
March 14, 2014 by Melanie Waddell
The Financial Industry Regulatory Authority took another step forward in mid-March to require brokers to disclose recruitment compensation paid to them as an incentive to move to a new firm by sending the plan to the Securities and Exchange Commission for approval.
The regulator raised the threshold of payments that would need to be reported. Rule 2243, approved by FINRA’s board last September, would apply to recruitment compensation — including signing bonuses, up-front or back-end bonuses, loans, accelerated payouts and transition assistance — of $100,000 or more, and to future payments (trade-based or asset-based) contingent on performance criteria.