FINRA issued a regulatory notice Dec. 30 “reminding firms of their responsibilities” when recommending a rollover or transfer of assets from an employer-sponsored plan into an IRA. Regulatory Notice 13-45 also addresses marketing IRAs.
Release of the notice signals a new emphasis on rollovers at FINRA. “Reviewing firm practices in this area will be an examination priority for FINRA in 2014,” the notice warns.
The eight-page notice summarizes existing FINRA rules and does not create any new requirements. Topics covered include:
• conflicts of interest
• suitability and fair dealing
• supervision and supervisory control systems
• training of registered reps
• communication with the public
• FINRA exams of firms
With the notice — and especially its emphasis on potential conflicts of interest — FINRA has aligned its position on IRA rollovers with that of the Department of Labor. "Like DOL, FINRA is starting to keep a close on the rollover market," says Brian Graff, Executive Director/CEO of ASPPA and NAPA. The result? "More regulation is likely coming," Graff says.
