Regulatory FrameworkQuestion 398 of 398
FINRA's BrokerCheck tool is best described as:
a.A free public service that discloses registration and disciplinary information about firms and brokers
b.A private database available only to member firms
c.A system for placing securities trades
d.A tool used only by the SEC for enforcement
Explanation
BrokerCheck is a free online tool operated by FINRA that lets the public research the background, registration status, and disciplinary history of brokerage firms and individual brokers. Much of its information is drawn from the CRD system, including data from Forms U4 and U5. It helps investors make informed decisions before doing business with a firm or representative.
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