New Rules on Reporting Brokers’ Dismissals to Begin Dec. 12

New rules significantly shorten the window of time brokerage firms have to report the details of a broker’s departure from their firm — an effort by securities regulators to make background information about brokers more accessible to consumers.

Starting on Dec.12, brokerage firms will have to report the details of a broker’s termination in three business days, down from 15. The Securities and Exchange Commission recently approved the change for the Financial Industry Regulatory Authority, the regulator of 629,530 registered securities representatives.

The information is reported to Finra’s BrokerCheck, a free online database intended for consumers to use to evaluate information about their brokers, or those they plan on using, including possible red flags such as frequent job-hopping. Finra has been trying to raise the profile of BrokerCheck in recent months, introducing a national print, online and television ad campaign this year.

Source: NYTimes

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