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