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FINRA seeks to tighten rules on loans between brokers and clients

FINRA sign and traffic.
Photo: Getty Images

Move seeks to further restrict a broker’s ability to borrow from or lend money to clients under FINRA rules.

The self-regulatory agency overseeing broker-dealer firms has filed a rule change with the SEC seeking to amend Rule 3240, which generally prohibits, with exceptions, registered persons from borrowing money from or lending money to their customers.

The proposed changes, FINRA said, “would emphasize that the rule is, first