States Aim to Tighten Checks on Barred Brokers

Posted on June 24th, 2015 at 5:16 PM
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.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, Wall Street journal, NAIC, National Association of Insurance Commissioners

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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