FINRA Gets OK to Expand BrokerCheck

The Financial Industry Regulatory Authority (FINRA) will make records of final regulatory actions against brokers permanently available to the public through the BrokerCheck service.

FINRA got the OK from the Securities and Exchange Commission for the expansion, which will be in effect November 30.

Currently, a broker’s record generally becomes unavailable to the public two years after he or she leaves the securities industry. FINRA said keeping the permanent records will boost investor protection.
“Individuals previously barred by FINRA and other regulators have surfaced in a number of recent frauds in other parts of the financial industry that cost unsuspecting investors millions of dollars,” said FINRA Chairman and CEO Richard Ketchum. “It has never been more critical for investors to research the backgrounds of the financial professionals they deal with than it is today.”