Chapter 9.8 Flashcards
Brokercheck
Provides information about FINRA-registered firms and brokers. If you remain in the industry, your information will be permanently available. If you leave the industry, full records of brokers remain available for 10 years.
Brokercheck will disclose…
- Currently approved registrations of brokers/firms
- Information about qualification exams passed and dates passed but not exam scores or fails
- Name and succession history for current and former member firms
- Summary information about certain arbitration awards
- Date and withdrawal from FINRA registration
- In response to telephonic inquiries via BrokerCheck toll-free hotline whether a member is subject to taping rules
- Historic Complaints: The information last reported on registration forms relating to customer complaints that are more than 2 years old and that have not been settled or adjudicated, and customer complaints, arbitrations or litigations that have been settled for an amount less than $10,00 prior to 5/18/09 or less than $15,000 on or after 5/18/09 and are no longer reported on a registration form provided that any such matter became a historic complaint on or after 8/16/99.
- Broker comments
- Final regulatory actions against brokers, including any that are on appeal
- Information with regard to investment-related civil action brought by a state or foreign financial regulatory authority that was dismissed pursuant to a settlement agreement.
What will FINRA not release?
- SSN, Residential history information, or physical description
- Proceedings or investigations which were vacated or withdrawn
- Internal review disclosures
- Reason for termination
- Form U-5 disclosure information for 15 days following filing
Expungement
No member firm or associated person shall condition or seek to condition settlement of a dispute with a customer on, or to otherwise compensate the customer for the customer’s agreement to consent to, or not to oppose, the member firm’s or associated person’s request to expunge any such customer’s dispute information, based on either a settlement or arbitration claim from the CRD system. The prohibition applies to both written and oral agreements. Expungement can only occur when there is an independent judicial or arbitral decision that expungement is appropriate.
BrokerCheck to be referenced on Member Firm’s websites
FINRA requires member firm’s websites to include a readily apparent reference and hyperlink to Brokercheck on:
- The initial web page that the firm intends to be viewed by retail investors, and
- Any other web page that includes a professional profile of one or more registered persons who conduct business with retail investors
**Firms may elect to satisfy the requirement of the rule by using “a deep link” to the firm or associated person’s individual BrokerCheck pages
Exceptions to the Brokercheck link rule include:
- A member firm that does not provide products or services to retail investors
- A directory or list of registered persons limited to names and contact information
- Third party websites
- Social media sites such as twitter and linked-in
- Hyperlinks and reference is NOT required on each email or text message sent by a member firm or RR to a retail investor
Factors that must be considered by the Firm for the brokercheck link include:
- Placement: Whether the reference and hyperlink are visible as soon as the person lands on the website or only after significant scrolling. If scrolling is required, it must be clear that further information is available below the screen that is being viewed.
- Font Size: The font size must be similar in size to the font size of other information on the page
- Font Color: Whether the font color of the description and hyperlink contrasts or blends in with the websites background
