SEC eyes advisor database changes

Other recommendations from the study include:
Expanding the search functions of BrokerCheck and IAPD to permit searches for broker-dealers, investment advisors, registered representatives and investment advisor representatives, based on ZIP code or other indicator of location. Enhancing BrokerCheck and IAPD by adding educational content, such as links and definitional material.

The study recommended after the 18-month implementation period, Commission staff and FINRA continue to analyze, including through investor testing, the feasibility and advisability of expanding BrokerCheck to include information currently available in the Central Registration Depository as well as the method and format of publishing that information.

It also recommended that Commission staff continue to evaluate expanding IAPD content and the method and format of publishing that content, including through investor testing. Potential modifications could include adding summary data for advisory firms on IAPD, hyperlinks between CRD numbers and SEC file numbers containing information related to a particular CRD number and additional links to content available elsewhere on BrokerCheck or IAPD.

Although greater transparency can help consumers, it also raises the bar for advisors to avoid black marks that could permanently tarnish their records. As always, staying focused on ethics and compliance is your best policy for long-term reputation management.