Next month’s issue of the Financial Industry Regulatory Authority’s Monthly Notice of Disciplinary and Other FINRA Actions could be a bit juicier thanks to a new rule that aims to widen the scope of what disciplinary action FINRA makes public.
The new rule has sparked debate about how much broker disciplinary information should enter the public domain.
Supporters believe making that additional information available will not only help the investing public do their due diligence on brokers, but will also add some insight and transparency to FINRA’s process as well because more details about its decisions will made available for public scrutiny, according to
“I think it provides more access and more accountability even on the regulatory side because when the industry has more information they can use that in discussions with regulators,” she said.
Others, such as the
“While we support FINRA’s diligence in informing investors regarding disciplinary complaints and disciplinary decisions, we question the appropriateness and purpose of drawing attention to actions that pose reputational harm to firms and advisors but were found lacking on the merits,”
A list of all pending or withdrawn complaints is already available through BrokerCheck, however, so making additional documents public would only add clarification, the
“Overall, PIABA supports the amendments,” said
FINRA said it would publish a regulatory notice no later than 60 days following the
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