Broker data again

Finra, the self-regulating industry association for stock brokers, is revisiting its system for confirming and reporting a broker’s record. Finra is going to cross-check their information against information in public court records, to supplement self-reporting by the brokers.

This follows a series of articles in the Wall Street Journal pointing out deficiencies in the Finra system. Congress is getting involved. One issue is whether results from required exams are posted (unlike doctors or lawyers). Finra recommends that investors look at their site (BrokerCheck) before investing.

“Plan to Fix Cracks in Broker Records,” Wall Street Journal, April 16, 2014 C1 http://on.wsj.com/Qp5N1j

Four perspectives. Finra’s. The brokers’s. The investors’s. The Journal’s.

I, for one, thought that people who got the highest score on the bar exam studied too hard. For me, it was pass/fail. But I wouldn’t begrudge someone who scored the highest from advertising that fact (the absolute scores were not available when I took the bar). I would, however, argue that maybe he or she might overwork a client’s file.

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Filed under Analytics, Collect, Duty of Care, Inform market, Inform shareholders, Information, Management, Ownership, Privacy, Use, Value

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