Utah legislator targets online broker records

Utah legislator targets online broker records
DEC 03, 2012
A Utah state senator is going to bat for investment brokers who have been the subject of enforcement actions by the state securities regulator and now say their reputations are suffering because the information is available online. Sen. Howard Stephenson told The Salt Lake Tribune that constituents have complained that their case files show up on Internet search engines such as Google and that regardless of the nature and outcomes of the enforcement actions, the information damages their reputation. According to the Tribune, Mr. Stephenson contends that many of the admissions of guilt by brokers under investigation were the result of “abuses” by the Utah Division of Securities under its former director, Wayne Klein. The division was audited in 2008 and Mr. Klein left the office that same year. Mr. Stephenson could not be reached for comment. "If people are complaining about something being a public record, then a statute would be needed to keep it secret," said Mr. Klein, who now is head of Klein & Associates PLLC. "On the other hand, if they're complaining that the records are now too available, the Division[of Securities] can't be expected to compensate for someone else publicizing a public record." It doesn't appear that the Utah regulator is open to the idea of scrubbing or removing case files on the Internet and/or adding information about ultimate outcomes of its past enforcement actions, according to the newspaper. “Utah has a billion-dollar fraud problem every year, and the idea that people who have admitted violating securities laws can, at some time, take that information and hide it from the public was not supported by the commission,” Erik Christiansen, chairman of the Utah Securities Commission, told the Tribune. The commission is a five-member panel that advises the securities division. Wayne Klein, the former director of the Utah Division of Securities and current head of Klein & Associates PLLC, added that a statute would have to be enacted to keep an incident from becoming a public record. "On the other hand," said Mr. Klein, "if they're complaining that the records are now too available, the Division [of Securities] can't be expected to compensate for someone else publicizing a public record."

Latest News

Advisor moves: LPL lands $700M Cambridge team, &Partners adds $728M
Advisor moves: LPL lands $700M Cambridge team, &Partners adds $728M

Meanwhile, Janney picks up a $280 million Merrill Lynch veteran in Scranton as independent and hybrid platforms keep drawing teams

Elevation Point secures Merchant backing as Emigrant Partners exits
Elevation Point secures Merchant backing as Emigrant Partners exits

The breakaway-focused minority investor has staked 15 RIAs since 2024 as private sponsors increasingly trade stakes

Veterans lead civilians on financial confidence, Wells Fargo survey finds
Veterans lead civilians on financial confidence, Wells Fargo survey finds

New data shows veterans report stronger financial security, legacy confidence and career earnings momentum than non-veterans.

CW Advisors adds $1.6B with triple acquisition push into Texas and beyond
CW Advisors adds $1.6B with triple acquisition push into Texas and beyond

Osaic subsidiary continues to forge new routes to US high-net-worth and ultra-high-net-worth people.

Client 360 is table stakes - wealth platforms must now deliver client intelligence
Client 360 is table stakes - wealth platforms must now deliver client intelligence

Capco's Matt Berkowitz tells InvestmentNews that aggregating client data is no longer enough.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.