PIABA, the Public Investors Arbitration Bar Association, issued a new report stating that FINRA’s BrokerCheck, the primary resource the public uses to learn about brokers and their firms, fails to include vital information, including the reasons a financial professional’s employment was terminated and other details investors should have before deciding whether to invest with them. The PIABA report says that information about bankruptcies, tax liens, and scores on relevant industry examinations also should be included on the system.

The PIABA report additionally states that after the group published a March 2014 report that first criticized FINRA’s broker information repository, the self-regulatory organization “made things worse” by spending millions to fund an advertising campaign to encourage investors to use the system.

“FINRA cannot be allowed to continue to hype a broken system it knows is of limited utility,” said Hugh D. Berkson, president of PIABA and a report co-author.

FINRA responded to the report, saying it is always looking for ways to improve its free tool for investors.

“A FINRA board working group is currently considering a number of these issues, is developing recommendations for the full board to discuss, and will consider topics raised in PIABA’s report in their deliberations,” FINRA spokeswoman Michelle Ong said.

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