Major brokerage firms and industry trade groups have reiterated their objections to a controversial Finra proposal that would require links to a public database of brokers' records in the firms' online marketing materials.
At the close of a public comment period on Monday, such firms as Wells Fargo Advisors and Charles Schwab & Co. Inc., and trade groups such as the Securities Industry and Financial Markets Association all filed comment letters adding fresh critiques to the controversial proposal.
The proposal would require brokers to place a link on social media and other public sites to Finra's BrokerCheck database of advisers' disciplinary records and employment history.
“Wells Fargo Advisors applauds Finra for seeking to enhance investor protection, but urges Finra to balance the potential benefits derived from making BrokerCheck more accessible to investors with the burdens imposed on member firms to comply,” wrote Robert McCarthy, director of Regulatory Policy for Wells Fargo Advisors.
It's the second time that Finra has floated the proposal, which seeks to raise investors' awareness of the database. The latest proposal was modified to exclude objectionable requirements, including one that would have required firms to post “deep linksR
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