Regulators tackle insurance agent license loophole
December 29, 2014 by IFAwebnews Staff
Regulators around the country are taking steps to patch a loophole that allows brokers who have been barred from the securities industry to sell insurance and other financial products.
The Financial Industry Regulatory Authority said it would next month begin providing to state insurance regulators a monthly report of its disciplinary actions against securities brokers. Wall Street’s self-regulator currently sends the report, which details whenever a broker is barred or suspended, only to state securities regulators.
Finra wants “to be certain that all state insurance regulators receive this information,” a spokeswoman said, according to the Wall Street Journal.
Some states said they are also moving to close the gap between their securities and insurance departments so that their responses are more coordinated after Finra bars a stockbroker from the industry for bad behavior.
Read the full story at the Wall Street Journal: Regulators Tackle Insurance License Loophole – WSJ.
