FINRA Rule 2273: A Friend to Transitioning

Posted on January 31st, 2018 at 2:15 PM
FINRA Rule 2273: A Friend to Transitioning

From the Desk of Jim Eccleston at Eccleston Law LLC:

Financial advisors transitioning to a new firm often contact their customers in order to retain their business.

FINRA Rule 2273 requires recruiting firms to provide registered representatives with educational communication materials that highlight key points for their customers to consider in deciding whether to transfer their assets to the new firm.

This is the second in a series of posts to guide brokers through the frequently asked questions regarding FIRNA Rule 2273.

Frequently Asked Question #3: Does Rule 2273 allow member firms to alter the format of the educational communication in the email to customers?

According to Rule 2273, member firms are allowed to send a hyperlink with the educational communication in an email to customers. However, FINRA requires that the hyperlink stands out in the email to customers. In addition, the hyperlink must link directly to the educational communication and should not require the customer to click on multiple links in order to access the information.

Frequently Asked Question #4:  Does Rule 2273 allow member firms to provide the educational communication to customers as a PDF attachment attached to an email?

According to FINRA, Rule 2273(a) allows a member firm to provide the educational communication to customers in paper or electronic form. Moreover, a member firm can either send the educational communications with a hyperlink, or attach the educational communication as a PDF, but are not required to do both.

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 advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, 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

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