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BrokerCheck Doesn’t Work if Investors Don’t Use It

Finra is looking at ways to increase the amount of information available to the public about brokers on BrokerCheck, according to Finra’s executive vice president for regulatory operations. Among the ideas on the table: posting brokers Series 7 test scores.

More information on the site will help investors learn about their broker’s background, but only if they know about the site and use it. It’s estimated that a mere 10% of investors use the database to make decisions about hiring a financial advisor.

Back in January 2013, Finra proposed a rule that would require brokers to include links to BrokerCheck on their websites. And to no one’s surprise: the proposal was withdrawn four months later under opposition from the brokerage industry.


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