SEC Approves FINRA Rule Requiring Firms to Provide an “Educational Communication” to Former Clients of Transitioning Registered Representatives

The SEC approved a disclosure rule proposed by FINRA requiring that member firms hiring or associating with a registered representative provide the representative's former clients an “educational communication” to be written by FINRA.   The communication is intended to prompt a former client to make further inquiries of the representative and their new and old firm to the extent that the client considers the information important…

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