As part of its multi-pronged effort to rein in broker-dealers with a significant history of misconduct, including firms with a high rate of broker-dealer switching, the Financial Industry Regulatory Authority (FINRA) is set to roll out an update to its BrokerCheck tool. Regulatory approval means that investors will soon be able to find out whether their brokerage firms have been flagged for numerous violations.
The update to BrokerCheck will see FINRA start showing on its database whether a firm is designated as "restricted" because of a habit of misconduct. This would include firms that have frequently been cited by regulators for violating securities laws or have had a high number of customer complaints.
The move is part of FINRA's efforts to increase transparency in the financial industry and protect investors from unscrupulous brokers. By highlighting firms with a history of misconduct, investors can make more informed decisions about where to invest their money and avoid fraudsters.
Securities Lawyers at the Soreide Law Group (1-888-760-6552) have announced a FINRA BrokerCheck tool to help individuals determine whether their broker or brokerage firm has a history of misconduct. The tool will provide investors with a list of any disciplinary actions taken against their broker or brokerage firm, including fines, suspensions, and revocations.
BrokerCheck is the database through which FINRA publishes licensing, registration, and disciplinary history of brokerage industry firms and professionals. The database is a valuable resource for investors looking to vet professionals that manage their money, sell them financial products, or provide them with investment advice.
If you're thinking about investing your money, you're probably researching the investments themselves -- stocks, bonds, funds, REITs, etc. However, it's important to remember that the person or firm managing your money can have a significant impact on your returns. BrokerCheck can help you vet these professionals and make sure you're working with someone who has a clean history.
The update to BrokerCheck will also be useful for job-hunting brokers, as it will provide them with information on firms with a history of misconduct. This will allow brokers to make better-informed decisions about where to work and avoid firms that may damage their reputation.
The fintech startup mentioned in the description is likely using SEC, FINRA, and other data to create a tool that makes information on financial advisors easier for consumers to digest. This type of startup is becoming more common as consumers demand more transparency in the financial industry.
In terms of tickers, there are none mentioned in this article as it is focused on regulatory news and investor protection rather than specific stocks or companies.
The anonymous image description for this article could be a screenshot of the BrokerCheck tool with a highlighted section showing a firm designated as "restricted" due to a history of misconduct. This would illustrate the new feature that FINRA is adding to the tool and show investors what they can expect to see when the update is rolled out. The image could also include a caption explaining the new feature and its benefits for investors.
Overall, this article falls into the category of Research and Popular as it provides valuable information for investors looking to protect their investments and make informed decisions about the professionals they work with. While not breaking news, the update to BrokerCheck is an important development that investors should be aware of.