Behind the Curtain: FINRA and Broker Disciplinary Records

If you’re not familiar with FINRA, it stands for the Financial Industry Regulatory Authority—a regulatory body responsible for overseeing brokers and enforcing securities laws. One of FINRA’s most visible tools is BrokerCheck, a public database that tracks broker compliance issues and disciplinary actions.

However, the effectiveness of BrokerCheck has long been debated. Securities attorneys have argued that the arbitration process for investor complaints often pushes clients toward quiet settlements. Until recently, those settlements frequently included the expungement of disciplinary actions—meaning a formal complaint could be erased from a broker’s record after a closed-door deal. Although the practice has now been banned, significant concerns remain.

For example, arbitration is still a private process, and questions linger about whether backroom settlements persist. Moreover, brokers can still petition to have records expunged—and many are successful. With limited resources or time, harmed investors rarely contest these efforts. As a result, an astounding 88% of brokers who request record expungement are granted it. Transparency remains an uphill battle.

The DOL Fiduciary Rule: A Shift Toward Transparency

In 2016, the Department of Labor (DOL) was expected to release a long-anticipated fiduciary rule requiring financial professionals—including brokers—to adopt a higher standard of care. Unlike the existing suitability standard, the fiduciary standard mandates that advice must be in the client’s best interest.

While the final version of the rule remained uncertain at the time, it was already clear that commission-based brokers would face pressure to shift toward fee-based models, either voluntarily or through their firms. This transition could push more professionals toward becoming Registered Investment Advisors (RIAs), where holistic financial planning is prioritized.

Although this rule likely wouldn’t eliminate commission-based sales altogether, it marked a significant step toward a more transparent and client-focused financial industry.

Art Imitates Wall Street: Sarah Meyohas at 303 Gallery

On January 8, artist Sarah Meyohas delivered a performance at 303 Gallery in New York—a conceptual exploration of financial markets. During the show, she executed real-time trades to influence stock prices, then recorded the market fluctuations using oil sticks as part of her artwork.

She reflected on the paradox of the New York Stock Exchange itself being a publicly traded company, stating:

“This line is the performance of the stock, of the exchange, on the exchange.
This line is a self-reflexive existence… It is creating its own image, attaining its own concept in self-revelation.”

There’s something oddly poetic about it—and while it might not change your views on investing, it certainly makes you think differently about how deeply intertwined finance and perception really are.

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