The Financial Industry Regulatory Authority (FINRA) has recently proposed a rule (Rule 3241 “Registered Person Being Named a Customer’s Beneficiary or Holding a Position of Trust for a Customer”) to the U.S. Securities and Exchange Commission (SEC) that aims “to create a uniform, national standard to govern registered persons holding positions of trust.”
This rule would prevent certain associated persons to act as beneficiaries, executors or trustees, on behalf of or for a customer (unless the customer is a member of the registered person’s family). In particular, it would create an obligation for a registered person to:
Furthermore, the employing firm will have to formally assess the risks of the operation and, if authorization is granted, supervise the compliance of the relationship on a continuous basis.
SOURCE: www.finra.org