Update on FINRA’s New Rep-Recruit Customer Notice Rule 2273

Following up on our previous post from last month, this past Monday, FINRA released Regulatory Notice 16-18 (Notice), announcing the effective date of November 11, 2016 for the new rule and providing the format and text of the required Educational Communication to be given to prior customers of newly recruited representatives seeking to transfer accounts to the new firm. The Notice and Educational Communication can be accessed by clicking here. The Communication is in Exhibit B of the Notice.