Christine Lazaro on BrokerCheck Disclosure System Omissions

In the Media
Monday, March 10, 2014

The Public Investors Arbitration Bar Association (PIABA) recently issued a report co-authored by Christine Lazaro, Acting Director of the Law School’s Securities Arbitration Clinic, on flaws in the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck disclosure system.

According to the PIABA report, FINRA's disclosure system omits information that is objectively important to investors seeking to make an informed decision about selecting a broker. The result is that consumers who use the BrokerCheck system to conduct their due diligence may make an incorrect assumption that all relevant information has been disclosed and may opt to rely on a broker they would have avoided had they known more information.

The report has been covered by a range of news outlets, including Forbes, Reuters, WSJ online, and CNBC.com. In an On Wall Street article, Lazaro explains, “[i]f an investor relied solely on a BrokerCheck report, they may be misled into believing that the broker left on amicable grounds.”

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