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FINRA Reproposes BrokerCheck Link Rule

FINRA Reproposes BrokerCheck Link Rule

The Financial Industry Regulatory Authority released a revised proposal requiring brokers to include a hyperlink to the regulator's BrokerCheck tool on their homepages and any other sites that include their professional profiles.

FINRA first proposed the controversial requirement in January 2013, but withdrew it in May 2013 after industry groups objected, including the Financial Services Institute who called it “vague" and "highly burdensome."

Wednesday’s revised rule proposal only applies to websites that are controlled and operated by the broker/dealers; the previous version would have also applied to third-party sites, like social media, that firms don't control. Wednesday’s proposal also no longer requires firms to use a link to the report of a specific firm or advisor; instead, it requires only a link to the BrokerCheck homepage.

The revised rule does not apply to firms that do not provide products or services to retail investors.

 
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