Effective April 28, 2025, FINRA is adopting amendments that clarify and define rules surrounding registered persons from borrowing money from or lending money to their customers.

• Clarifying that the rule’s general prohibition and requirements apply to borrowing or lending arrangements that pre-exist a new broker-customer relationship
• Defining “customer” to include any customer that has, or in the previous six months had, a securities account assigned to the registered person at any member, which extends the rule’s limitations to borrowing or lending arrangements entered into within six months after a broker-customer relationship terminates
• Extending the rule’s general prohibition and requirements to borrowing or lending arrangements that involve conflicts similar to the ones presented by arrangements directly between registered persons and their customers.

More information can be found via the following link https://www.finra.org/rules-guidance/notices/24-12

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