New FINRA Rule May Spark Pushback From EB-5 Agents Abroad
By Allissa Wickham (August 28, 2015, 10:31 PM EDT) -- A new Financial Industry Regulatory Authority rule requiring U.S. broker-dealers to disclose fees paid to foreign agents may create some pushback from finders who aren't used to divulging fees to clients, but the rule's reach may be curbed by the limited number of registered brokers involved in EB-5 fundraising.
Under FINRA's new rule, which became effective Aug. 24, broker-dealers must disclose to investors the amount of fees they've paid to foreign finders who provide introductions, and they must get written acknowledgment from the investor saying they're aware of those fees, according to attorneys.
Although the rule isn't exclusive to the EB-5...
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