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January 10, 2014

FINRA’s New “Tone From the Top” Approach to Help Decrease Conflicts of Interest

The Financial Industry Regulatory Authority Inc. (FINRA) has issued a new report about conflicts of interest within its broker-dealer members. As a result of a study of fourteen member firms, FINRA formulated a policy known as “tone from the top” approach to help decrease these conflicts. This approach analyzes the policies and procedures governing the firm’s top management officers and studies how those policies and procedures impact the entire organization. Many think that the report suggests that FINRA is beginning to inch closer and closer to a more fiduciary oriented standard for the disclosure of conflicts. FINRA is hoping that this report will help begin and continue to improve the manner in which conflicts of interest are handled.

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For FINRA’s complete report, click Here