Investor protections, broker expungement rate, FINRA response

WASHINGTON, DC - In an effort to protect investors and the integrity of the Financial Industry Regulatory Authority's (FINRA) BrokerCheck program, U.S. Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) sent a bipartisan letter last month asking FINRA to clarify and strengthen standards for expungement of investor complaints against brokers.  After receiving a written response from FINRA and a follow up meeting this week with staff from the offices of Senators Reed and Grassley and FINRA officials, the senators today issued the following joint statement:

"FINRA was responsive to our inquiry and it appears the organization is taking this problem seriously.  We will continue to follow up and work closely with  FINRA to ensure that it follows through on its commitment to improve the expungement system.  It is important for consumers to have the unvarnished information they need.  We hope FINRA will take a direct role in making sure this happens."

FINRA's written reply is available here.  

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