Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Tuesday, January 22, 2013

FINRA Proposes Brokerage Firms Provide Link to BrokerCheck on Websites

FINRA has filed with the SEC a proposed rule change to amend FINRA Rule 2267 (Investor Education and Protection) to require that members include a prominent description of and link to FINRA BrokerCheck, as prescribed by FINRA, on their websites, social media pages and any comparable Internet presence and on websites, social media pages and any comparable Internet presence relating to a member’s investment banking or securities business maintained by or on behalf of any person associated with a member.  (Download 34-68700[1])

This proposed change stems from FINRA's review of BrokerCheck, including ways to increase investor use of the information.  Many participants in focus groups conducted by a market research consultant stated that they were unaware of the existence of BrokerCheck.  Currently firms are required to notify customers annually in writing of the BrokerCheck hotline number. 

http://lawprofessors.typepad.com/securities/2013/01/finra-proposes-brokerage-firms-provide-link-to-brokercheck-on-websites.html

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