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BrokerCheck Is Facing Some Big Changes

By Alex Padalka October 3, 2017

Finra’s Board of Governors is seeking comment on expanding information available on its BrokerCheck database, the industry’s self-regulator says in a press release. In addition, Finra is seeking comment on allowing remote office inspections of “low-risk” branches.

The details follow a September revelation that Finra had reversed its decision to prohibit third-parties from downloading records in bulk.

Under the proposed amendment to BrokerCheck, Finra is considering providing more information about advisors and firms registered as broker-dealers and investment advisors, and giving the public access to limited data sets on BrokerCheck profiles in line with information provided by the SEC’s Investment Adviser Public Disclosure site, according to Finra. Additionally, the amendment would exclude information about deceased individuals as well as some data on individuals with no registration since 1999, the regulator says. Finally, companies would be able to comment on BrokerCheck about arbitration awards involving them, according to Finra.

The regulator is also seeking comment on letting its members perform remote inspections of offices that have no more than three associated people, as long as none of them have disciplinary records or are subject to disqualifications and the office doesn’t handle any client funds or securities, according to the press release. The companies wishing to conduct remote inspections would also need to have policies and procedures in place to ensure the inspections are reasonable and that the sites are eligible, Finra says.

Finra

Finra’s board is also reviewing its advisory committee structure and plans to approve its 2018 budget at a meeting in December, according to the press release.