Finra Withdraws Proposal Requiring Brokers to Disclose Big Recruitment Bonuses

Wall Street’s self-regulator has pulled back a plan to make brokers tell clients about big-money bonuses they get for changing firms, saying the proposal needs changes. The move follows criticism from the brokerage industry, which questioned some of the details of the Financial Industry Regulatory Authority’s proposed rule, including how much it would cost firms to comply. The said it needed more study and possible revision. Finra sent its plan to the Securities and Exchange Commission earlier this year for review and approval. But in light of the industry’s criticism it now needs some reworking, Finra said Monday. Because of time constraints built into the Dodd-Frank law, Finra decided to formally withdraw its proposal and file a new version later this year, it said. More in the Wall Street Journal here.