FINRA Seeks Feedback on How Brokers Report Misdeeds, Complaints

The Financial Industry Regulatory Authority is taking another look at a rule that requires brokers to report wrongdoing and customer complaints involving their firms.

The public has until March 9 to comment on the “effectiveness and efficiency” of the regulation, known as FINRA Rule 4530, the brokerage regulator said in a Jan. 9 notice. The rule is from 2011.

Brokerages must report conclusions they have made about misconduct at their firms, provide summaries of customer complaints, and disclose criminal actions against their brokers, among other requirements under the regulation.

FINRA’s notice has several questions for the public to answer. ...