News | 12.17.19
FINRA Board Sends the SEC Proposal to Boost Oversight of Firms Hiring Rogues
FINRA's board has voted to send to the SEC a rule proposal that would place higher capital standards on brokerages that hire many registered representatives with disciplinary histories. Under the measure, firms that are deemed "restricted" because they have a high percentage of rogue brokers or a history of misconduct would have to maintain a deposit in a segregated account from which they could not make withdrawals without FINRA's permission. The board also sent the SEC proposals to amend the suitability rule and rules for noncash compensation to conform with the SEC's Regulation Best Interest.
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