Payments to Unregistered Persons
Members or their associated persons may not pay any compensation, fees, concessions, discounts, commissions, or other allowances to any non-registered persons, such that receiving this payment would require them to be registered as a broker-dealer.
Note: Member firms must offer new issues and mutual funds to the public at the public offering price. They cannot offer sales or discounted prices to their customers.
In addition, member firms or associated persons may not pay compensation to a registered associated person unless the payment complies with all applicable federal securities laws, FINRA rules, and Securities Exchange Act (SEA) rules and regulations.
Example Question
Sarah, a representative of a broker-dealer, has a