Later this year, a pair of new Financial Industry Regulatory Authority, Inc. (FINRA) rules will go into effect that govern the activities of broker-dealers that engage in distribution or solicitation activities with government entities in exchange for compensation from investment advisers.
FINRA member firms that have relationships with government entities and intermediate on behalf of investment advisers should consider whether these new rules will affect their business models and whether any enhancements to their compliance frameworks will be required.