Regulatory Outlook | 06.26.20
FINRA Moves Ahead on Brokers-as-Beneficiaries Rule
FINRA will create a uniform, national standard that governs broker-dealer or broker "holding positions of trust for clients. The rule covers being named a client's beneficiary, trustee, or executor, or being given power of attorney. FINRA says the rule “will better protect investors and provide consistency across member firms’ policies and procedures.” The regulator adds that the rule change would apply to clients “who are not immediate family members, because of the greater potential risk that the registered person has been named a beneficiary or to a position of trust by virtue of the broker-customer relationship." The proposed changed to Rule 3241 has already been sent to the SEC for approval.
Read the full article on Think Advisor.