The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s proposed rule change to adopt a new, consolidated rule governing accounts opened or established by associated persons at firms other than the member firm at which they are employed or registered (FINRA Rule 3210). FINRA Rule 3210 combines provisions of various National Association of Securities Dealers and New York Stock Exchange rules that address review and investigation of securities transactions and oversight of the trading activities of associated persons of member firms.
Under FINRA Rule 3210, an associated person who wishes to open an account or have a beneficial interest in an account at another member firm or other financial institution must obtain the prior written consent of his or her member firm. An associated person is deemed to have a beneficial interest in an account when, among other things, the account is held by: (1) his or her spouse; (2) his or her child; (3) a related individual over whose account the associated person has control; or (4) an individual over whose account the associated person has control and to whom the associated person contributes financially.
If an account was opened by an associated person prior to his or her association with the member firm, the associated person, within 30 calendar days of becoming so associated, must obtain the written consent of his or her member firm to maintain the account and must notify in writing the executing member or other financial institution of his or her association with the member firm.
For more information about FINRA Rule 3210 please click here.