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FINRA Rule 2150

Prohibits the improper use of customers' securities or funds, guarantees against loss, and sharing in customer accounts, with certain exceptions and requirements for prior written authorization.

Rule Overview

Jurisdiction: United States

Regulator: FINRA

Topic: Consumer Protection

Overview
Latest News
Further Reading

This rule is intended to to protect customers’ securities and funds from misuse by member firms and their associated persons.

The rule prohibits guarantees against loss and sharing in customer accounts, unless specific conditions are met, including prior written authorization from the member and the customer.

Members and associated persons must also comply with record retention and reporting requirements, and ensure that any sharing arrangements are in direct proportion to their financial contributions to the account.

Latest News More on FINRA Rule 2150 

Further Reading

FINRA Duites and Conflicts Rules Go to https://www.finra.org/rules-guidance/rulebooks/finra-rules/2000 FINRA Rule change proposal Go to https://www.finra.org/rules-guidance/rule-filings/sr-finra-2009-014 SEC Order approving proposed rule change Go to https://www.sec.gov/files/rules/sro/finra/2009/34-60701.pdf Daniel Shawn Murff AWC Go to https://www.finra.org/sites/default/files/2022-11/Disciplinary_Actions_November_2022.pdf