FINRA’s New Rule Limits Brokers From Being Named as Customers’ Beneficiaries
FINRA recently adopted a new rule to limit stockbrokers from being named a beneficiary, trustee, or executor by a customer. The new FINRA Rule 3241 protects investors by requiring all FINRA-member brokerage firms to affirmatively address any situation where a customer appoints a firm’s stockbroker as beneficiary or to another position of trust such as a trustee or executor. Rule 3241 requires the brokerage firm to affirmatively permit or prohibit the stockbroker from acting in such capacity or rece