FINRA Rule 2273: A Friend to Transitioning Reps-Part 5

Posted on February 21st, 2018 at 3:45 PM
FINRA Rule 2273: A Friend to Transitioning Reps-Part 5

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA Rule 2273 may help financial advisors transitioning to a new firm when planning to 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 fifth in a series of posts to guide brokers through the frequently asked questions regarding FIRNA Rule 2273.

Frequently Asked Question #9: Does Rule 2273 require a member firm to include educational communication materials with a letter announcing that a registered representative was hired by that member firm?

Pursuant to Rule 2273(b)(1)(A), if the first individualized contact to a customer by the registered representative or member firm is in writing, such as an announcement letter, the educational communication materials must accompany the written communication.

Frequently Asked Question #10:  Does Rule 2273 require educational communication materials to be included with account transfer approval documentation?

Pursuant to Rule 2273(b)(1)(A), if sending account transfer approval documentation is the first individualized contact with a customer by the registered representative or member firm, the educational communication materials must accompany the documentation.

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.

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