FINRA Proposes Limits On Associated Persons Acting For Customer Trusts

FINRA requested comments on a proposal that would restrict certain associated persons from acting as beneficiaries, or as executors or trustees, on behalf of or for a customer.

Under proposed Rule 3241 ("Registered Person Being Named a Customer's Beneficiary or Holding a Position of Trust for a Customer"), any associated person (other than a family member of the relevant customer) could not be named as:

• a beneficiary of a customer's estate or receive a bequest from an estate, unless the registered person provides written notice to the person's employer, at the time of receiving notice, that the registered person has been named and receives written approval (which may be subject to conditions); or