Buchanan Shareholder Joseph A. Dougherty Talks FINRA’s Broker Bonus Disclosure Rule with InvestmentNews & Fund Fire

InvestmentNews and Fund Fire recently reported on the Financial Industry Regulatory Authority’s (Finra) controversial proposal to pull Rule 2243, which would require brokers to tell their clients about recruitment incentives when they changed firms.

Finra withdrew their proposal, which they originally sent to the Securities and Exchange Commission (SEC) for approval in March, and shocked many industry observers who expected the rule to be imminent since it had already made its way to the SEC.

“There were a good number of comments received and there was a lot of input,” Joseph A. Dougherty, managing shareholder of Buchanan Ingersoll & Rooney’s Philadelphia office told InvestmentNews in regard to the many comment letters that were sent about the proposal. “My sense is that all those comments needed to be digested, and perhaps the rule will get refined and reissued.”

The possibility for Finra to propose another version of the rule is still out there. “My suspicion is that they will rework it and resubmit it,” said Dougherty. 

Read the full article – “Finra's Broker Bonus Disclosure Rule Pulled” (InvestmentNews, June 23, 2014)

Read the article in Fund Fire - "FINRA Drops Proposed Bous Disclosure Rule" (Fund Fire, June 24, 2014) Subscription required.