Complaints, convictions and rulings against brokers will get posted to regulator website

FINRA to post more broker complaints, convictions

WASHINGTON — Investors will soon be able to see more customer complaints, criminal convictions and rulings against brokers, a securities regulator said Tuesday.

The Financial Industry Regulatory Authority, or FINRA, said it was given approval to expand its free online BrokerCheck service by the Securities and Exchange Commission.

The changes will increase the number of complaints and disciplinary actions reported, and extend the public disclosure period for a broker who leaves the industry to 10 years from two, FINRA said. Information like criminal convictions, civil injunctive actions and arbitration awards against former brokers will be posted permanently, the regulator said.

FINRA also plans to formalize a dispute process for current and former brokers to question the accuracy or update information on the service.

“This additional information will benefit investors who are considering whether to conduct, or continue to conduct, business with a particular securities firm or broker,” said FINRA Chairman and CEO Rick Ketchum in a statement. “Just as important, it will provide valuable information about persons who have left the securities industry, often not of their own accord, who have established themselves in other segments of the financial services industry and can still cause great harm to the investing public.”

The expanded information will be posted in two phases.

In late August, historic complaints going back to 1999 will be added to the public records of all current and former brokers.

By the end of the year, full records will be publicly available for all brokers whose registrations were terminated within the last 10 years.

Also by the end of the year, the criminal and legal information will be added to the records of the appropriate former brokers, and the dispute process will be in place.

FINRA is the largest non-governmental regulator for all securities firms doing business in the United States. It registers and educates industry participants, examines securities firms, writes and enforces rules and federal securities laws and administers dispute resolution for investors and registered firms.

Online:

www.finra.org