FINRA’s board of governors approved a rule proposal on Thursday, February 14, that would impose new limits on financial advisors’ ability to remove information about customer disputes from BrokerCheck, the regulator’s online portal where investors can find information about a registrant’s legal, regulatory and disciplinary history.
Under the proposed rule, firms and their associates would be barred from reaching settlements with customers who are conditioned on the agreement not to oppose a broker’s request to expunge information from FINRA’s Central Registration Depository, the database that feeds information to BrokerCheck.
The rule now heads to the SEC, which will review and seek comments from the public before determining whether to approve the measure. Learn more…