The Securities and Exchange Commission approved Monday the Financial Industry Regulatory Authority’s plan to reduce from 15 days to three the release of disclosure information filed on Form U5 through BrokerCheck.
Firms use Form U5 to terminate broker registrations with self-regulatory organizations and the states.
Most of the information that FINRA releases through BrokerCheck generally is made available the day after it is filed with the Central Registration Depository system.
FINRA’s Rule 8312, however — which governs the information FINRA releases to the public via BrokerCheck — provided for a 15-day delay in disclosing terminations.
The 15-day waiting period, according to FINRA, was established to give brokers on whose behalf the Form U5 was submitted an opportunity to comment on the disclosure event either through a Form U4, which firms use to register brokers with SROs and the states, or by submitting a comment directly to FINRA.
Beginning on Dec. 12, the 15-day delay will be reduced to three business days.