Regulatory Actions Will Be Permanently Accessible on BrokerCheck
Pursuant to a new rule approved by the SEC, FINRA will make records of final regulatory actions against brokers permanently available on the BrokerCheck service, rather than expunging the data two years after a broker leaves the securities industry. FINRA wants to prevent brokers with regulatory actions from leaving a BD only to re-appear as a financial planner without customers having access to prior regulatory data. The retained data will include any final sanction by any regulatory body but will not include customer complaints or other negative data such as arbitrations.
OUR TAKE: We think the full disclosure model makes sense. We would support including all information including customer complaints and arbitrations. Let the customer decide whether such information is relevant and/or timely.