FINRA Proposes to Add a BrokerCheck Alert on High-Risk Firms

Posted on June 15th, 2017 at 9:24 AM
FINRA Proposes to Add a BrokerCheck Alert on High-Risk Firms

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA’s board has proposed adding an “alert” to the BrokerCheck report of member firms that employ a large percentage of brokers who previously worked for high-risk firms. A firm is considered high-risk when it employs brokers who previously worked at firms expelled from the securities industry.

The purpose of FINRA’s proposal is to expose firms with suspect hiring practices to the same public disclosure warnings that are on individual brokers’ records if they were employed at firms with histories of broker fraud. FINRA has been aggressively marketing its BrokerCheck website as a safety check tool to retail investors. The proposal would require firms to record all broker conversations if they hire more than a specified percentage of brokers from firms that were expelled or had their registrations revoked for sales practice violations.

The proposal, like all FINRA rules, will require approval from the SEC.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & Arbitration, Strategic Consulting Services, Regulatory  Matters, Transition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, NFL

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.

October 22, 2021
TIAA Sues Former Advisors For Allegedly Soliciting Clients

Teachers Insurance and Annuity Association of America (TIAA) filed suit against three of its former Connecticut advisors for allegedly soliciting TIAA clients to join them at their new firm.