Financial Industry Regulatory Authority (FINRA) has announced changes to its free, online
BrokerCheck service. BrokerCheck is designed to offer investors access to information
about brokers and former brokers.
FINRA is a non-governmental regulator of securities firms conducting business
in the United States. The agency’s main purpose is to protect investors from
stockbroker fraud and
FINRA has announced that the changes to BrokerCheck will increase the
number of publicly reported customer complaints against a broker dating
back to 1999, when electronic filing of broker information began. The
changes will also extend the public disclosure period for the entire record
of any broker who leaves the industry for up to 10 years.
Any information concerning criminal convictions, certain civil injunctive
actions and any arbitration awards against brokers will be made permanent,
even if the broker leaves the financial industry.
However, in an effort to protect brokers, BrokerCheck will be improved
by containing a formalized dispute process in which current and former
brokers can dispute the accuracy of, or update, factual information reported
“This additional information will benefit investors who are considering
whether to conduct, or continue to conduct, business with a particular
securities firm or broker,” said FINRA Chairman and CEO Rick Ketchum.
You can learn more about how to look into a broker’s record by reading
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