Finra's BrokerCheck and the SEC's databases would display the same information on dual-registered investment advisors beginning June 20 under a new rule proposal.

Finra’s board of directors approved the proposed rule change last week. If greenlighted by the SEC, the plan to include dual-registrants’ information on BrokerCheck will go live by early summer.

Finra’s BrokerCheck maintains information on about 3,610 registered broker-dealer firms and 625,000 brokers, including a history of any disciplinary actions taken against brokers.

The tool also provides the public with access to information about formerly registered broker-dealer firms and brokers. In 2019 alone, BrokerCheck helped investors, firms and regulators conduct almost 41 million searches, Finra said.

The move by Finra follows the lead of the SEC, which on February 15 implemented changes to its Investment Advisor Public Database (IAPD) to include and display BrokerCheck information. 

Finra is now proposing to amend the BrokerCheck program to make corresponding changes to allow IAPD information to be included in all BrokerCheck searches.

The changes were prompted by the SEC’s Investor Advisory Committee, which requested that “more complete, simple and centrally operated search functions” be made available to permit more “thorough understanding of the background of those offering financial products and financial advice.”

Shortly after the IAC’s recommendations were issued, "Finra and SEC staff began discussing how best to align changes to IAPD under consideration by the SEC with possible changes to BrokerCheck to provide users with more comprehensive, consistent, and easier access to information already publicly disseminated about individuals that is contained in both systems,” FINRA said in its proposal.

The change would also provide cost-savings and more direct access to information for investors and firms who use BrokerCheck, the self-regulator said.