Sept 20 Wall Street's top self-regulator wants
to make information about brokers more accessible to investors,
which would hold those in the industry more accountable for
their past actions.
The Financial Industry Regulatory Authority in September
voted to submit proposals to the U.S. Securities and Exchange
Commission that would make information in its BrokerCheck system
easier for investors to find, and keep records of even those
dismissed investment-related civil actions on permanent public
The plan was outlined in a Sept. 14 letter from FINRA's head
Rick Ketchum and published in the group's newsletter this week.
BrokerCheck is a free online tool that allows public access
to the professional backgrounds of about 1.3 million current and
former FINRA-registered brokers and 17,400 current and former
FINRA-registered brokerage firms. The system is accessible via
The proposed amendments would require member firms to
include a reference and a link to BrokerCheck on their own
company home pages and related websites for FINRA-registered
FINRA also has proposed an amendment to keep even those
investment-related civil actions that have been dismissed by a
settlement agreement on permanent public file in the BrokerCheck
system. The amendments also would allow for downloading of
BrokerCheck information as approved by the board.
The proposed changes come after FINRA had solicited comments
from February through April on ways to increase investor use of
the tool. The independent regulator said in May it had added
features to make BrokerCheck easier for investors to navigate.
FINRA declined to comment further.