• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Checking on Errant Brokers


Shady brokers suspended by the Financial Industry Regulatory Authority can reappear as insurance agents, mortgage brokers, or financial planners. You can check a broker's record through FINRA's BrokerCheck or your state securities regulatory agency.

In the wake of the stock market’s implosion, the number of complaints lodged against securities brokers hit record levels. Still, most of the brokers toiling in the financial industry are honest, according to market analysts, but that doesn’t mean that there aren’t some shady characters peddling securities to unsuspecting investors. And some who have been barred or suspended from the securities industry by the Financial Industry Regulatory Authority reappear as insurance agents, mortgage brokers, or financial planners.

You can check on your broker’s record through FINRA’s BrokerCheck, which has all the information in a Central Depository Record file. The CDR file discloses any actions such as fines or suspensions that have been taken against the broker, as well as a record of any complaints or arbitrations. Researching the data on your current broker, along with your financial planner or insurance agent, can tell you a lot about whether they are trustworthy.

Some Wall Street observers point out that there’s a problem with FINRA’s records, however. Two years after a broker’s registration has lapsed, the information disappears from BrokerCheck, although it’s kept on file privately. Investors can still check on brokers through their state’s securities regulatory agency, but it’s a step that many don’t bother with, say regulators.

FINRA has proposed a change in the rules that would allow it to permanently display a condensed record of any broker who has been fined, suspended, or barred from the industry by securities regulators. Brokers who have not been disciplined, however, would continue to have their records vanish from BrokerCheck, even if they have been the target of several complaints or arbitrations.

Related Videos
Victor J. Dzau, MD, gives expert advice
Victor J. Dzau, MD, gives expert advice