Consumer and industry advocates are criticizing FINRA over its alternative to a proposal that would have required recruiting firms to disclose advisor compensation incentives to clients when moving between brokerages.

The new proposal requires firms to educate clients on the issues that would arise from their broker switching firms, including the costs that may arise, non-transferrable investments and financial incentives the broker may receive that could be based on client asset transfers, or product sales at the new firm, said FINRA chairman and CEO Richard Ketchum in a recorded statement on the regulator¬ís website. 

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