WASHINGTON, D.C. – The Financial Services Institute (FSI) today announced another advocacy victory following the most recent FINRA Board of Governors Meeting when amendments to the BrokerCheck Disclosures did not include making financial advisors’ test scores for tests taken on a pass/fail basis public on the system.
FSI took a strong stance against the posting of the scores noting that doing so would be unfair to advisors who had taken the test to pass, not competing to earn the highest score. FSI also noted that the scores would not directly benefit investors due to the pass/fail scoring system. In the end, FINRA is moving towards more transparency for investors and less confusion, but not moving the goalpost on advisors – a win, win for all involved.
“We laud FINRA for increasing transparency while not moving the goalpost on financial advisors by publicly posting test scores taken on a pass/fail basis,” said FSI President & CEO Dale Brown. “The posting of these scores would have negatively impacted advisors who took the test to pass, not competing to earn the highest score. And access to these scores would only lend confusion to investors as there is no correlation between a score earned on a pass/fail exam and the quality of the advice provided by an advisor. Most importantly, this is a glowing example of how constructively engaging regulators with the unified voice of over 35,000 financial advisors can be productive and create a positive outcome for advisors and investors alike.”
Below is the list of rulemaking items that were discussed during the September 2012 FINRA Board of Governors Meeting:
Investor Use of BrokerCheck Information
About the Financial Services Institute (FSI): FSI is an advocacy organization for independent financial services firms and independent financial advisors. Established in January 2004, we have over 100 financial services firm members and over 35,000 financial advisor members. Our member firms have upwards of 180,000 financial advisors affiliated with them. Our mission is to create a more responsible regulatory environment for independent broker- dealers and their affiliated independent financial advisors through effective advocacy, education and public awareness. And our strategy includes involvement in FINRA governance, constructive engagement in the regulatory process and effective influence on the legislative process. For more information, please visit www.financialservices.org.