Finra probes brokerage bank sweep accounts as commissions dwindle

Financial Industry Regulatory Authority Inc. emphasized that it would probe bank sweep programs in which brokers put uninvested customer money into accounts at affiliated banks or into money market funds. . . . With Finra peering over their shoulders, brokerages will have to do more than automatically put customer cash into a sweep account, according to Brent Burns, owner of the Law Offices of Brent A. Burns. “Not one size fits all,” Mr. Burns said. “Each broker should look at their clients’ needs because they may not fit the default.”

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