NEW YORK, June 23 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Regulatory Authority has withdrawn a controversial proposal that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
(Reporting by Jed Horowitz; Editing by Dan Grebler)