Finra Rule 2341 prohibits member firms from making payments or offers of payments of any non-cash compensation, subject to specified exceptions.
The Financial Industry Regulatory Authority (Finra) has fined First Trust Portfolios (First Trust) US$10m for providing excessive non-cash compensation, including gifts, meals and entertainment, in connection with the distribution of the company’s securities and related misconduct. Headquartered in Wheaton, IL, First Trust is primarily engaged in providing exchange-traded funds (ETFs) and distributing a variety of financial products including structured notes as a wholesaler in the US.