FINRA’s proposal to require financial advisors to include a link to BrokerCheck on their Web sites and social media pages has been withdrawn—at least temporarily.
BrokerCheck is an online tool investors can use to research the backgrounds of current and former Finra-registered brokerage firms and brokers, as well as investment advisor firms and representatives. The database includes histories of disciplinary and enforcement actions.
FINRA’s original proposal would have required advisors to include a "prominent description" of BrokerCheck, in addition to a link on their Web sites, social media pages and any other forms of "Internet presence" they maintain.
FINRA, which submitted the rule to the Securities and Exchange Commission in January, wants to consider public comments on the proposal before pursuing it further, according to a spokesperson.
“There is simply no way, in many cases, for a link to BrokerCheck to be prominently displayed on social media sites and, therefore, the rule is impossible to implement,” said David Bellaire, executive vice president and general counsel of FSI, which has argued against the rule.