Heard Off the Street: Changes to Keep Brokers in Check?August 31, 2014 – In The News
Ernest Badway was quoted in the Pittsburgh Post-Gazette article “Heard Off the Street: Changes to Keep Brokers in Check?” While the full text can be found in the August 31, 2014, issue of the Pittsburgh Post-Gazette, a synopsis is noted below.
The securities industry group that polices the brokerage community has a new way to prevent brokers from having their misdeeds erased in a vital database that investors can rely on when choosing a broker.
Badway said expungement is warranted in many instances because the allegations that investors make frequently lack merit. The new rule means that when brokers settle nuisance complaints, the unwarranted allegations made in those complaints are “going to travel with them for the rest of their careers,” he said.
“I think it’s going to have a horrible impact,” Badway said. “I think they’re pandering to the [investors’] bar.”