FINRA has filed with the SEC proposed rule changes that are intended to facilitate greater consumer access to BrokerCheck. Assuming that these proposals become reality, you better take a fresh look at your risk avoidance and know your customer models because, with greater access to information, consumers will likely use BrokerCheck as their primary resource in selecting a financial advisor.
One proposed change to Rule 2267 (investor education) would require member firms to have a reference and a link to BrokerCheck on their websites. Another proposed change to Rule 8312 would provide the public with permanent access to state or foreign cases against associated persons that were dismissed pursuant to a settlement.
Assuming that these proposals become a reality, it is prudent to take a fresh look at your risk avoidance and know your customer protocols. I have prepared guidebooks on these topics, which you may find useful tools in managing your risk and knowing your customers.
One thing for certain, FINRA is using the consuming public to weed out bad advisors. If BrokerCheck reveals adverse information about you, it is more likely that you will have difficulty attracting and retaining customers. Act now, revisit risk avoidance, and avoid being a BrokerCheck poster-child.