Exam Alert: FINRA prohibits quid pro quo allocations

Effective May 27, 2011, FINRA member firms and associated persons may not offer or threaten to withhold shares of an allocation of a new issue in order to Continue reading

Effective May 27, 2011, FINRA member firms and associated persons may not offer or threaten to withhold shares of an allocation of a new issue in order to receive excessive compensation.  This prohibited behavior is known as a quid pro quo allocation, where the member or associated person gives preferential allocation in exchange for a kick-back. Relevant to Series 24, Series 62 and Series 79.

http://www.finra.org/Industry/Regulation/Notices/2010/P122491

Leave a Reply

Your email address will not be published.