On September 19th, the Financial Industry Regulatory Authority announced that its Board of Governors approved a proposal requiring brokers to disclose recruitment compensation paid to them as an incentive to move to a new firm. The proposal will be submitted to the SEC for review. The proposal contains two components: a disclosure obligation and a reporting requirement. The disclosure requirement would apply to recruitment compensation of $100,000 or more, and to future payments (trade-based or asset-based) contingent on performance criteria. Firms would also be required to report to FINRA significant increases in total compensation paid to a newly recruited representative during the first year. FINRA Press Release.