States Aim to Tighten Checks on Barred Brokers
From the Desk of Jim Eccleston at Eccleston Law LLC:
After the Wall Street Journal reported states had little ability to keep tabs on barred brokers, the states have decided to make improvements in their capabilities.
The article severely criticized state insurance watchdogs, whose systems allowed brokers simply to slip through the cracks.
The National Association of Insurance Commissioners, NAIC, now has partnered with the states in order to establish a much more effective policy.
With the new policy, NAIC will take a more hands-on approach. After receiving disciplinary reports from FINRA, the NAIC will review its database to red flag those who are insurance agents.
Once the barred brokers are flagged, NAIC also will shave the information with the states. The states then will track the individual’s actions and will have the ability to stop any continued bad conduct.
The decision to revoke the license of an insurance agent will rest solely in the hands of the states.
The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.
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