SEC Calls for More Data on Brokers

The Securities and Exchange Commission is issuing a rule proposal that would expand the amount of information about a broker’s disciplinary history made available to the public. The proposal would provide for the release of investors’ pending and settled complaints against the broker; active investor-broker arbitrations and civil lawsuits; active criminal and regulatory investigations; and dismissals following allegations of investment-related violations. The National Assn. of Securities Dealers currently releases only information about a broker’s employment history with securities firms; disciplinary actions by federal and state securities regulators and self-policing industry bodies; securities-related arbitration and court decisions; and criminal indictments and convictions.