FINRA withdraws U.S. broker pay disclosure rule; will refile

NEW YORK, June 23 Mon Jun 23, 2014 2:35pm EDT

NEW YORK, June 23 (Reuters) - The Financial Industry Regulatory Authority has withdrawn a controversial proposal that would require brokers to disclose to customers signing bonuses and other compensation they receive to move to a new firm.

FINRA, as the brokerage industry self-regulator is known, asked the Securities and Exchange Commission on Friday to withdraw consideration of the rule that it had submitted on March 10, 2014. A spokesman said it plans to refile the rule later this year.

"The proposal generated 184 comment letters, and due to the rigid timelines... by which the SEC must act on a proposal, FINRA did not believe it could fully address the comments within those time frames," spokesman George Smaragdis wrote in an email to Reuters. (Reporting by Jed Horowitz; Editing by Dan Grebler)

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