Industry to Finra: Why disclose exam scores?

Industry to Finra: Why disclose exam scores?
Finra requested comments two weeks ago about disclosing more info through BrokerCheck - including brokers' exam scores. Reps' responses? Less is more.
MAY 25, 2012
Industry observers are wondering why the Financial Industry Regulatory Authority Inc. has issued a proposal to disclose licensing exam scores on its BrokerCheck system. Finra requested comments two weeks ago about disclosing more through the disciplinary reporting system, including exam scores, broker termination information and more historical data. The request, Finra Regulatory Notice 12-10, is part of a larger review of BrokerCheck mandated by the Dodd-Frank reform law. Industry commentators are confounded by the idea of publishing exam scores. “I believe publishing test scores makes no sense for someone who has been in the business for over 25 years,” April Kvalvik, a broker with Bank of America Merrill Lynch, wrote in a comment letter. “As a CFP, I have mastered many complex areas in investing and financial planning. I do not think that scores from a 25-year-old test are relevant.” “Such scores reflect only the knowledge of regulatory requirements at the time of the test and not investment knowledge or any relevant industry skills,” wrote David Wiley, president of Wiley Bros.-Aintree Capital LLC. “In fact the very act of publishing such scores would be misleading, as it connotes validity … in selecting a broker,” he said. “I would like the grades of all Finra and SEC employees, schools they attended, last ten years of employment, criminal history … bankruptcy filings and any financial judgments … made public,” wrote Catherine O'Brien, a representative at Crowell Weedon & Co. Finra also is considering making the massive BrokerCheck database available to private vendors. Currently, it blocks automated download tools from accessing the system. “It is important that Finra and the SEC make the data underlying these databases available for download in electronic, machine-readable format, so that nonprofit entities, as well as journalists and other investigators, are able to gain access and do sophisticated investigations using the information,” wrote Ellen Miller, executive director of The Sunlight Foundation. Finra spokeswoman Nancy Condon had no comment.

Latest News

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

iCapital secures $820M in latest funding, hits $7.5B
iCapital secures $820M in latest funding, hits $7.5B

The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.

Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity
Merrill Lynch on the hook for $3.7M after clients claimed sale of unsuitable private equity

Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.

What does it take to feel 'financially comfortable' or 'wealthy' in 2025?
What does it take to feel 'financially comfortable' or 'wealthy' in 2025?

New report shines a light on how Americans view wealth today.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.