The Financial Industry Regulatory Authority announced in late April that it's proposing a major expansion of its BrokerCheck service to make advisor records permanently available to the public, regardless of whether they continue to be employed in the securities industry.
The firm says final regulatory actions by the SEC, regulatory organizations and the States are to be included in permanent disclosure to the public.
Under current rules, a broker's record generally becomes unavailable to the public two years after he or she leaves the securities industry and is therefore no longer under FINRA's jurisdiction.
"Individuals previously barred by FINRA and other securities regulators have surfaced in a number of recent frauds responsible for millions lost by unsuspecting investors," said Richard Ketchum, FINRA chairman and CEO in a released statement. "Investors should be able to check if the financial professional they're dealing with has been the subject of a disciplinary action."
The firm filed its rule proposal to expand BrokerCheck with the SEC. The SEC will publish the proposal in the Federal Register and solicit public comment in the near future - no word about when, as of print.
