FINRA Issues Regulatory Notice Which Provides Guidance on Customer Communications Related to Departing Registered Representatives- Part 2

Posted on April 15th, 2019 at 4:09 PM
FINRA Issues Regulatory Notice Which Provides Guidance on Customer Communications Related to Departing Registered Representatives- Part 2

From the Desk of Jim Eccleston at Eccleston Law LLC:

On April 5, 2019, FINRA issued Regulatory Notice 19-10 to provide guidance to departing registered representatives on customer communications. This is the second in a series to address the key points in FINRA Regulatory Notice 19-10.

To begin, in its regulatory notice, FINRA affirmed that although it recognizes that there are different business models that give rise to different approaches to managing relationships, it is imperative that all financial services firm answer customer questions regarding a departed registered representative in a complete and timely fashion. Moreover, while FINRA recognizes that there are obvious differences between a departing registered representative who works closely with customers in a one-on-one relationship compared to one who works with a customer advisory center model or group service model, FINRA states that it is necessary for firms to answer all questions in order for their customers to make an informed decision about their accounts.

The attorneys at Eccleston Law assist financial advisors nationwide in their employment transitions, negotiate their transition agreements (including employment agreements and forgivable loans), and defend reps in arbitration and litigation during and after their transition.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, finra, regulatory notice, employment transitions, financial advisors

Return to Archive

TESTIMONIALS

Previous
Next

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

August 16, 2022
SEC Warns Financial Advisory Firms Regarding Conflicts of Interest Tied to Compensation

The Securities and Exchange Commission (SEC) has sent a warning to financial advisory firms that they must go above and beyond solely disclosing conflicts of interest related to employee pay programs in order to avoid regulatory scrutiny. 

August 15, 2022
FINRA Proposal Would Permit Private Homes to Serve as Non-Branch Offices

The Financial Industry Regulatory Authority (FINRA) has filed proposed changes to FINRA Rule 3110 with the Securities and Exchange Commission (SEC).

August 12, 2022
SEC Charges J.P. Morgan, UBS, and TradeStation for Deficiencies Pertaining to the Prevention of Customer Identify Theft

The Securities and Exchange Commission (SEC) has charged J.P. Morgan Securities, UBS Financial Services, and TradeStation Securities over deficiencies in their programs designed to prevent client identify theft, which violates the SEC’s Identity Theft Red Flags Rule, or Regulation S-ID.