New FINRA Rule Would Mandate BrokerCheck On Every Firm Website Or Other Internet Presence

Wednesday, January 30, 2013 20:14
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New FINRA Rule Would Mandate BrokerCheck On Every Firm Website Or Other Internet Presence

Tags: Dodd-Frank | FINRA | regulation

A new rule out for comment by FINRA would mandate a link to its BrokerCheck website on every broker-dealer’s website, social media pages, or other comparable types of internet presence.
 
Currently, all brokers are required to furnish to clients in writing the BrokerCheck hotline number and FINRA website address.

This Website Is For Financial Professionals Only


 
The new rule would enable investors to link directly to a specific firm’s or a specific advisor’s BrokerCheck page instead of having to first go through the BrokerCheck site.
 
The proposed rule is in response to an January 2011 SEC study mandated by the Dodd-Frank Act that examined ways to increase investor access to BrokerCheck.
 
Brokers say that BrokerCheck provides vague descriptions of violations that make them sound worse than they really are.
 
If a client feels a broker was unfair to them, that will show up on the BrokerCheck page. Brokers feel the current FINRA approach is unfair.
 
FINRA should encourage investors to ask a broad range of questions instead of putting rules together piecemeal to increase transparency.

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