A Securities and Exchange Commission Committee has found that many investors, particularly older ones, have trouble finding out important information about their potential financial advisor.
The commission, last Thursday, recommended the SEC work with other government and self-regulatory groups to establish one universal database that would bring together the professional and disciplinary records of financial advisors across a number of sectors of the financial services industry. The committee called on the SEC to work with other federal regulators, self-regulatory organizations (SRO) and state regulators to develop a single site that will permit a search of all the relevant databases that provide background information on financial service professionals.
The proposed database would provide basic licensing information as well as provide information about the background, honesty, integrity and competency of the financial professional. Existing databases, such as FINRA's BrokerCheck and the SEC's Investor Advisor Public Disclosure system, provide some of that information, but those systems are not linked, and many financial professionals are not covered by those search engines, including mortgage brokers, insurance agents and municipal advisors. Also missing from those databases are those individuals who have been sanctioned by the SEC, FINRA or another regulator, but are otherwise unregistered.
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter have successfully represented hundreds of investors in cases of unsuitable trading, negligence, breaches of fiduciary duty and failures in supervision. If you have suffered losses due to improprieties on the part of your financial advisor, please contact us for a free case evaluation