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Second, FINRA would outline “buyer” to incorporate “any buyer that has, or within the earlier six months had, a securities account assigned to the registered particular person at any member.”
This alteration, FINRA states, “would lengthen the rule’s limitations to borrowing or lending preparations entered into inside six months after a broker-customer relationship terminates.”
Third, FINRA plans so as to add Rule 3240.05 (Preparations with Individuals Associated to Both the Registered Individual or the Buyer).
Proposed Rule 3240.05 “would tackle the potential for buyer abuse that arises when a registered particular person induces a buyer to enter right into a borrowing or lending association with an individual or entity associated to the registered particular person or, likewise, induces a buyer to have an individual or entity associated to the client enter into an association with the registered particular person,” FINRA explains.
FINRA’s plan would additionally redefine the time period “rapid household.”
Because it stands now, “rapid household” means “mother and father, grandparents, mother-in-law or father-in-law, husband or spouse, brother or sister, brother-in-law or sister-in-law, son-in-law or daughter-in-law, kids, grandchildren, cousin, aunt or uncle, or niece or nephew, and another particular person whom the registered particular person helps, straight or not directly, to a cloth extent.”
The revised rule would change “husband or spouse” with “partner or home accomplice” and amend the definition in order that it “consists of step and adoptive relationships.”
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