FINRA aims to ban deals that make clearing brokers’ records easier

Wall Street’s industry-funded watchdog will propose banning settlements in disputes between brokerages and investors that require investors to not oppose erasing details about complaints from brokers’ public records, its chief wrote in a letter to two U.S. senators released on Friday. Settlement agreements that provide additional compensation to investors who allege they lost money because of their brokers’ advice, in exchange for not trying to block the removal of black marks from their brokers’ records, could interfere with determining if a broker is entitled to such relief, wrote Richard Ketchum, chairman and chief executive of the Financial Industry Regulatory Authority. More on Reuters here.

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