Finra looks to fill holes in BrokerCheck net

Rogue brokers will find it harder to hide their disciplinary records if the Financial Industry Regulatory Authority Inc. has its way.
FEB 23, 2010
Rogue brokers will find it harder to hide their disciplinary records if the Financial Industry Regulatory Authority Inc. has its way. Last week, the brokerage industry's self-policing body proposed further expansion of broker information available through its free BrokerCheck service. Under the proposal, the public would be able to access historic complaints lodged against brokers as far back as 1999. The expanded timeline would cover complaints about any registered broker or one whose registration had been terminated within the previous two years. Currently only those brokers with three or more historic actions against them have those records on BrokerCheck. The plan also calls for records of former brokers to remain public for 10 years — up from two years — once they are out of the industry. That proposal, Finra noted in a statement, would allow investors to “access information about individuals who may work in other sectors of the financial services industry or who have attained other positions of trust.” Finally, the proposal would expand the information that the public could permanently access about a broker's records. Under Finra's scheme, such information would include criminal convictions or guilty pleas, as well as civil injunction, arbitration awards and civil judgments based on the former broker's involvement in a sales practice violation. The new proposals come just a few months after the Securities and Exchange Commission approved a Finra proposal to make all former brokers' records permanently available through BrokerCheck. Previously, a broker's records were no longer available two years after he or she left a securities firm. “At the time of the expansion last year, the SEC suggested we look at further ways to expand the scope,” said Herb Perone, a spokesman for Finra. All Finra proposals are subject to SEC approval. E-mail Jessica Toonkel Marquez at [email protected].

Latest News

Barred advisor forged wife’s signature on life insurance contracts, according to FINRA
Barred advisor forged wife’s signature on life insurance contracts, according to FINRA

Thrivent Investment Management Inc. in May fired Nicholas Hale, according to his BrokerCheck profile.

Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways
Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways

About 70 bank and credit union advisors move to the Raymond James platform, while a $480M New Jersey team goes independent with LPL

Tax-aware investing should expand client choices, not constrain them 
Tax-aware investing should expand client choices, not constrain them 

The best tax plan asks not only how much a client could save, but what they would have to give up to save it. 

Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis
Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis

A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.

SEC enforcement against public companies hits record low under Atkins
SEC enforcement against public companies hits record low under Atkins

New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.

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.