SEC to meld searches for adviser, broker info

Report says simultaneous access to IAPD, BrokerCheck will better serve the public

Jan 30, 2011 @ 12:01 am

By Liz Skinner

Melding the search results of the two systems the public uses to look up information about financial advisers and broker-dealers will make it easier for investors to investigate their financial professionals, according to an SEC staff report released last week.

This simultaneous search and two other staff-recommended changes to the Investor Adviser Public Disclosure website and the Financial Industry Regulatory Authority Inc.'s BrokerCheck system must be implemented within 18 months, according to rules laid out in last year's Dodd-Frank Act.

A second change will allow for searches of brokers and advisers based on ZIP code or other location. The third will add educational information, such as definitions and links, to both systems.

The report said a new system that uses the information found in the two databases might be an even better solution but that isn't really feasible given the 18-month deadline, the expense and the questions of who would own and maintain such a system.

The Securities and Exchange Commission has long maintained that investors should use registration information about brokers and advisers — such as professional licensing data, disciplinary and employment history, customer complaints and contact information — before they hire one, the report stated.

The information also can better protect investors from fraud, it said.

E-mail Liz Skinner at lskinner@investmentnews.com.

0
Comments

What do you think?

View comments

Most watched

Events

Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.

Events

Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.

Latest news & opinion

Redtail CRM data breach exposes personal client data

The information exposed includes names, addresses, dates of birth and Social Security numbers.

This strategy can double your estate-tax exemption

'Portability' allows a surviving spouse to tack the decedent's exemption on to his or her own. Despite the higher threshold for paying estate taxes in the 2017 tax law, experts recommend filing for the benefit.

Couple in Morgan Stanley advisory account wins $519,000 arb case over unsuitable investments

Plaintiff's lawyer says junk bonds, futures contracts and derivatives were inappropriate for his clients.

The growth of factor-based investing

Advisers are making decisions about clients' portfolios by using the same characteristics that govern factor-based ETFs.

Finra makes its list to target hundreds of rogue individuals

The regulator sees patterns in the behavior and disclosures of high-risk brokers.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print