Tags: stockbrokers | fail | exam | broker

WSJ: 51,000 Stockbrokers Fail Basic Exam

By    |   Tuesday, 15 April 2014 02:53 PM

More than 51,500 financial advisers have failed at least once an entry-level test that they must at some point pass to sell securities, according to data that was obtained by The Wall Street but is unavailable for investors.

Some of the brokers failed the exam more than once, and those who did have worse disciplinary records on average, according to the paper. The discipline includes criminal charges and firings.

Advisers who flunked the test more than twice were 77 percent more likely to have committed a felony or financial-related misdemeanor than were brokers who passed on their initial attempt and approximately 55 percent more likely to have been canned.

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The Financial Industry Regulatory Authority (Finra), a self-regulatory body that oversees brokerage firms, has expressed opposition to making test scores public in the past.

But after The Journal informed Finra of its analysis this month, Richard Ketchum, the group's CEO, said that letting investors see brokers' exam failures "is a close question that we intend to review," the paper reports.

There are some things you can find out about investment advisers on Finra's BrokerCheck web page, including whether they have been sanctioned by securities regulators.

Meanwhile, some middle-class investors are having difficulty finding a broker who is interested in their business.

"There has been a paradigm shift in the financial services industry just over the past four years with the increase in banking regulations and associated costs, which has led many major banks and broker-dealers to focus more on their bottom line and shareholder value, more so then their clientele," Jon Ulin, a managing principal at Ulin & Co. Wealth Management, tells U.S. News & World Report.

Editor's Note: These 38 Investments Have a 96% Win Rate

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More than 51,500 financial advisers have failed at least once an entry-level test that they must at some point pass to sell securities, according to data that was obtained by The Wall Street but is unavailable for investors.
stockbrokers, fail, exam, broker
297
2014-53-15
Tuesday, 15 April 2014 02:53 PM
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