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.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

February 11, 2025
UnitedHealth Group Agrees to $69 Million Settlement in ERISA Class Action Lawsuit

UnitedHealth Group has agreed to pay $69 million to resolve a class action lawsuit alleging violations of its fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA).

February 10, 2025
Former Merrill Lynch Advisor Sanctioned by FINRA for Unauthorized Trades

FINRA has fined Anthony J. Seifert, a former Merrill Lynch advisor based in Mount Pleasant, South Carolina, $5,000 and suspended him for 20 days.

February 7, 2025
Court Finds American Airlines Breached Fiduciary Duty in 401(k) ESG Case

A federal court ruling against American Airlines has brought attention to the role of environmental, social, and governance (ESG) factors in managing retirement plans.