3/07/2014 — 

WASHINGTON, DC – In response to a new study from the Public Investors Arbitration Bar Association (PIABA), which found that the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck background check system routinely omits “red flag” background information such as tax liens and sales practice abuse investigations, U.S. Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) today issued the following joint statement:

“While FINRA has been responsive to our concerns regarding expungement of broker records, we remain concerned that crucial red flags and potential warning signs are not readily available to investors.  FINRA made a commitment to us to improve its expungement system and to provide greater transparency.  Clearly, there is some more work that FINRA needs to do.  We expect FINRA to honor this commitment and ensure that the plain and simple facts are available to investors.” 

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