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market selloff headline

Thursday, March 6, 2014

New Consumer Advocate Lawyers' Study Challenges BrokerCheck System

The Public Investors Arbitration Bar Association (PIABA), is hosting a media call at 1:00 p.m. today to provide details regarding a recent study conducted by PIABA that compares the FINRA BrokerCheck database with the Central Registration Depository (CRD). The study will be released publicly today.

According to Reuters, FINRA a substantial amount of CRD data to populate the BrokerCheck system, but does not include as much detail.  For example, BrokerCheck discloses information about a broker's licenses as well as customer arbitration complaints, but excludes information about licensing exam scores, or if a broker satisfied a tax lien.  Other advocates have criticized the BrokerCheck system for lacking the features of a “relational” database, to search, for example, all brokers who ever worked with “The Wolf of Wall Street,” Jordan Belfort, or Bernie Madoff.

Read the full Reuters report here and here.

Read the PIABA press release here.

UPDATE: Wall Street Journal report regarding new PIABA BrokerCheck study available here.

InvestmentNews published detailed coverage here.