FINRA’s Focus on Account Recommendations and Rollovers

FINRA’s continued focus on account recommendations and rollovers is evident in its 2025 FINRA Annual Regulatory Oversight Report (the Report), Based on the Report, broker-dealers and their registered representatives (advisors) should ensure that account transfers and rollover recommendations are evaluated based on all relevant factors, that the recommendation aligns with the investor’s financial circumstances and investment objectives, and that the investor receives adequate disclosures.

In its Report, FINRA identifies a number of issues it has uncovered during its regulatory examinations that directly address account recommendations and rollover recommendations and sets forth effective practices to address these issues.  These issues and FINRA’s recommended effective practices are discussed below.