FINRA Wants to Expand BrokerCheck to Include All Customer Complaints
FINRA has announced that it will seek to expand the information available through BrokerCheck to include all historic complaints against a registered representative. Currently, BrokerCheck does not require the inclusion of customer complaints, arbitrations and litigations if they have not been adjudicated or settled for an amount less than $15,000 and if they were more than two years old. The expansion would also include a former broker’s information for 10 years after he/she leaves the industry and would make more serious information (e.g. criminal convictions, civil injunctions) permanently available.
OUR TAKE: We support expanding the time period for former rogue brokers, who often give up their licenses and re-appear as “financial planners.” However, we are somewhat uncomfortable requiring mere customer complaints, without any findings of fact, a mark on a broker’s record