FINRA to Expand Information Available Through BrokerCheck
The Financial Industry Regulatory Authority said that in August it will begin expanding the amount of information available to the public about current and former securities brokers on FINRA's free online BrokerCheck service.
The expansion, which was approved by the Securities and Exchange Commission, will increase the number of customer complaints reported publicly; extend the public disclosure period for the full record of a broker who leaves the industry from two years to 10 years; and make certain information about former brokers available permanently, such as criminal convictions, some civil injunctive actions and arbitration awards against the broker.
The changes will also formalize a process for current or former brokers to dispute the accuracy of or update factual information disclosed through BrokerCheck.
"This additional information will benefit investors who are considering whether to conduct, or continue to conduct, business with a particular securities firm or broker," FINRA CEO Rick Ketchum said in a statement. "Just as important, it will provide valuable information about persons who have left the securities industry, often not of their own accord, who have established themselves in other segments of the financial services industry and can still cause great harm to the investing public."
The BrokerCheck expansion will be implemented in two phases. In late August, historic complaints will be added to the public records of all current and former brokers. By the end of the year, full records will be publicly available for all brokers whose registrations have terminated within the last 10 years. Also by the end of the year, the additional information that will be permanently available will be added to the records of former brokers and the formal dispute process will be fully in place.
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