The Securities and Exchange Commission (“SEC”) has issued a notice of a proposed rule change to FINRA Rule 2267 to require that members include a prominent description of and link to FINRA BrokerCheck on the “on their Web sites, social media pages and any comparable Internet presence and on Web sites, social media pages and any comparable Internet presence relating to a member’s investment banking or securities business maintained by or on behalf of any person associated with a member.” The intent of this rule is to promote the use of BrokerCheck by investors. See the proposed rule here.
In 1988 FINRA established BrokerCheck (previously, the “Public Disclosure Program”) to provide the investors with information on the background and conduct of FINRA member firms and their associated persons. The information that FINRA releases to the public through BrokerCheck is derived from the Central Registration Depository (‘‘CRD’’), the securities industry online registration and licensing database. FINRA-member firms, their associated persons and regulators report information to the CRD system. Red flags, such as prior complaints and disciplinary history, are useful information to customers, and can assist investors in choosing the brokers to work with.
FINRA’s BrokerCheck tool can be found here.