Finra’s Board of Governors will consider at its Dec. 6 meeting a proposed rule that would require broker-dealers to spell out to their clients their broker compensation package, according to a notice listed on Finra’s website.
After the meeting, Finra officials will notify member firms via email about the board's actions on this item and anticipated next steps, if any.
Wirehouse firms and their brokers could be significantly impacted by the above rulemaking item, and rulemaking in the area of broker bonuses is sure to be hotly debated over the coming months.
Other items on Finra’s Board of Governors' list include a proposal to seek essential information from crowdfunding portals that want to apply for membership with Finra under the Jumpstart Our Business Startups Act. Finra indicated that prospective funding portals would file their information with Finra voluntarily until the SEC and Finra put in place rules governing funding portals.