Regulatory Notice 10-34

SEC Approves Changes to Expand the Information Released Through BrokerCheck and Establish a Process to Dispute (or Update) Information Disclosed Through BrokerCheck; Effective Date—Historic Complaints and Dispute Process: August 23, 2010; Effective Date—Disclosure Period and Permanently Available Information: November 6, 2010

Executive Summary

The SEC approved amendments to FINRA Rule 8312, which governs the release of information through BrokerCheck. The amendments:

 

(1) make publicly available in BrokerCheck all historic customer complaints that became non-reportable after the implementation of Web CRD;

 

(2) permanently make publicly available in BrokerCheck information about former associated persons of a member firm, as reported to CRD on a uniform registration form if they were (a) convicted of or pled guilty or no contest to certain crimes; (b) subject to a civil injunction involving investment-related activity or found in a civil court to have been involved in a violation of investment-related statutes or regulations; or (c) named as a respondent or defendant in an arbitration or civil litigation in which they were alleged to have committed a sales practice violation, and which resulted in an award or civil judgment against them;

 

(3) expand the BrokerCheck disclosure period for former associated persons of a member firm to 10 years from two years; and 

 

(4) codify FINRA’s current process for disputing the accuracy of (or updating) information disclosed through BrokerCheck.

 

The amendments involving the public availability of historic customer complaints and the process for disputing the accuracy of information disclosed through BrokerCheck become effective on August 23, 2010. The effective date for the amendments pertaining to the expansion of the disclosure period for former associated persons and the permanent public availability of certain information about former associated persons of a member firm is November 6, 2010.

 

The text of the amendments to FINRA Rule 8312 is set forth in Attachment A.

 

Questions concerning this Notice should be directed to:

 

  • Richard E. Pullano, Associate Vice President and Chief Counsel, Registration and Disclosure, at (240) 386-4821; or
  • Stan Macel, Assistant General Counsel, Office of General Counsel, at (202) 728-8056.

 

This Notice was updated to renumber the footnotes.