Alleged wrongdoing by stockbrokers is routinely erased from public records, making it difficult for investors to check the past conduct of financial advisors, according to a new study.
The report found that stockbrokers almost always succeed in getting negative information removed from a database known as BrokerCheck.
BrokerCheck is intended to protect investors against unscrupulous brokers. It lists brokers' complaints from customers and investigations by regulators. BrokerCheck is operated by the Financial Industry Regulatory Authority, an oversight organization operated by the securities industry.
After settling a legal dispute with a client, a broker can apply to...