Actually it seems strange that is even still a question.
It is my guess that it would be hard to find an investor who wouldn’t want to know if the broker he is considering handing his nest egg over to manage has filed for bankruptcy or has a string of customer complaints.
The Financial Industry Regulatory Authority (FINRA) has for many years maintained the historical data regarding a stockbrokers educational, employment, regulatory, and disciplinary history. This report, called a CRD (Central Registration Depository) also contains information about any customer complaints, arbitrations and lawsuits involving that broker as well as whether that broker has ever filed for bankruptcy or had tax liens filed against him.
This information has been considered “public information” for many years however there has been little attempt until recently to let the public know about its existence. Until FINRA added the BrokerCheck service to their website a few years ago, the path to obtaining this public information was not well known.
In a regulatory notice filed January 25th, 2013, FINRA is proposing that all firms include a description and a direct link to the information on the broker or firm on the BrokerCheck website. This proposal is open for public comment for 45 days from the January 25th publication in the Federal Register.
For more about what is included on a stockbroker’s CRD visit here.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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