Proposed Amendments to FINRA Rule 3240
Following up on a retrospective review launched in 2019, FINRA released Regulatory Notice 21-43, which shows their proposed amendments to FINRA Rule 3240: Borrowing from or Lending to Customers. With these changes, FINRA is hoping to reduce instances of abuse as well as to modernize the rule. Based on the feedback they received during their retrospective review, FINRA decided to propose 3 main changes. Pre-Existing Arrangements The first proposed change deals with expanding Rule 3240(a) to cover arrangements that pre-exist a new broker-customer relationship. The proposed changes would add verbiage to specifically state that no person associated with a member Read more about Proposed Amendments to FINRA Rule 3240[…]