April 16, 2009
April 16, 2009
I have been a securities arbitration attorney for more than eight years. Previously, I was a registered representative with a NASD and New York Stock Exchange member firm. Over the years, I have seen outrageous broker conduct that never made its way onto the registered representative's CRD because the individual rep was not named in an arbitration claim (even though the entire claim related to the rep's misconduct).
This new rule corrects a huge deficiency in the reporting process for incidents related to broker misconduct. I strongly support it, and believe that the proposed rule will benefit the investing public and significantly help regulators police the securities industry. The public will benefit from being able to obtain more thorough information concerning the background of a particular rep. Securities regulators will be better equipped to address repeated misconduct by a particular registered representative.
I believe this change will go a long way toward enhancing the credibility of the public disclosure system.