The Massachusetts Securities Division says it is conducting a sweep of state-registered broker-dealers with “an above average number of representatives with current misconduct reports on their record to learn details of the firms’ hiring policies and procedures.”
The regulatory body has reached out to 241 firms where more than 15% of advisors have at least one current disclosure incident on their record. The firms were given two weeks to respond with the requested information on hiring since Jan. 1, 2014, and must tell regulators the number of representatives terminated or placed on heightened supervision in that period.
“My office diligently works to keep the bad actors out of the Commonwealth,” said Commonwealth Secretary William F. Galvin, the state’s top securities regulator, in a statement. “This sweep is intended to establish how the industry is meeting this critical investor protection responsibility of keeping the rogue broker out of the industry.”