A private group that regulates investment brokers has scrapped plans that would have made it easier for clients to check up on their brokers.
The Financial Industry Regulatory Authority Inc. (FINRA) told brokers that they must post a link to the organization's BrokerCheck website, which has information about broker registrations and history or arbitration when clients claim they have been wronged by bad advice.
After a comment period, in which brokers, including Wells Fargo Advisors LLC, criticized the plan, FINRA said adding a link to the website would not be required, InvestmentNews reported.
FINRA wanted brokers to post the BrokerCheck link on their websites and on social media. Brokers said it would be cumbersome to post the link on Twitter and other social media accounts. Some suggested FINRA should first improve its BrokerCheck website, InvestmentNews reported.
The plan was floated as a way to make brokers' backgrounds more accessible under directions from the Dodd-Frank Wall Street Reform and Consumer Protection Act. Click here to read more.