After complaints, the Financial Industry Regulatory Authority on Wednesday withdrew its proposed rule that would have required advisory firms to include a reference and a link to BrokerCheck on their websites.
FINRA had asked the Securities and Exchange Commission last September to approve further amendments to BrokerCheck that would have required advisors to include a BrokerCheck website link.
A FINRA spokesperson told AdvisorOne that FINRA withdrew the filing “in order to give further consideration to the comments received in response to the SEC’s publication of the proposed rule change,” and that FINRA plans to refile its proposal.
David Bellaire, executive vice president and general counsel for the Financial Services Institute, told AdvisorOne on Wednesday that FINRA’s proposal, in its current form, was “unworkable.”
What Your Peers Are Reading
Jonathan Henschen, president of the broker-dealer recruiting firm Henschen & Associates, says that “having BrokerCheck links on social media is unnecessary and extreme, perpetuating suspicion of representatives when it is not warranted.”
In September, FINRA asked the SEC to amend FINRA Rule 2267, in an attempt to “to facilitate and increase investor use of BrokerCheck information,” by requiring member firms to include a reference and a link to BrokerCheck on their websites and on certain websites maintained by, or on behalf of, any person associated with a member firm.