SmartBrief (InvestmentNews October 20, 2016) — System doesn’t include reasons for advisers’ employment termination and other details public needs before deciding who to hire, a new report found

The main resource that the public uses to learn about brokers and their firms, Finra’s BrokerCheck, doesn’t include the reasons a financial professional’s employment was terminated and other details investors should have before deciding whether to invest with them, a new report found.

The Public Investors Arbitration Bar Association report said information about bankruptcies, tax liens and scores on relevant industry examinations also should be included on the system. Some of these circumstances already are disclosed by state securities regulators, according to the report released Thursday.

The PIABA report also said that since the group published a March 2014 report that first criticized the Financial Industry Regulatory Authority Inc.’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 Thursday, saying it’s 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.

The U.S. Congress should intervene and require more transparent disclosure if Finra doesn’t improve the system, the PIABA report said.

A new regulation requires a link to BrokerCheck to appear on an adviser’s website, and is aimed at making it easier for a prospect or client to look into a broker’s record.