Investor Complaints Are Being Erased From Advisor Records. Why That’s a Problem.

Brokers are erasing client complaints from their regulatory records at a brisk pace, potentially creating blindspots for state securities regulators and consumers, according to a new study.

Through a process known as expungement, brokers have been increasingly seeking to wipe their records clean of complaints that would otherwise be available to regulators as well as investors through BrokerCheck, an online public database maintained by industry self-regulator Finra.

The…

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