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FINRA Looks to Tighten Non-Cash Compensation Rules

New digital solutions offer wealth advisors and broker-dealers a way to improve tracking.

FINRA Looks to Tighten Non-Cash Compensation Rules

A look at the recordkeeping routine during normal times, not to mention during today’s troubled climate, can help explain why so much non-cash compensation goes missing so easily.

  • Guesswork. A financial advisor might have qualified for and participated in an asset manager-sponsored education event for Continuing Education credits. However, the advisor’s estimate of value might not align with the dollar amount the asset manager recovered from fund shareholders.
  • Missing Data. A broker-dealer or wealth manager might aggregate all given costs from their advisors, but miss a few of the events because of delayed or omitted reporting.
  • Inaccuracy. When asset managers receive and send broker-dealer expense reports to their operations group for reconciling and data cleansing, inaccuracies can surface.

Discover how a digital portal solution can reconcile workflow and reporting in a timely manner to keep your advisors and product vendors on the same page.

Dan Mezaros, Product Manager, Broadridge.

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