Table of Contents
SERIES 7 | SERIES 65 | FINANCIAL REGULATION COURSES
FINRA Rule 2267 — Investor Education and Protection — requires every FINRA member firm to provide to each of its customers, in writing and not less than once every calendar year, three specific items of information designed to make customers aware of BrokerCheck — FINRA's free online investor protection tool that allows any member of the public to research the professional background, registration history, examination record, and disciplinary history of any registered representative or broker-dealer operating in the United States securities industry.
The three required items are the FINRA BrokerCheck hotline number — giving customers a telephone resource for accessing BrokerCheck information — the FINRA website address — directing customers to the primary online platform through which BrokerCheck and other FINRA investor protection resources are accessed — and a statement notifying customers of the availability of an investor brochure that includes information describing BrokerCheck and how to use it effectively.
Rule 2267 is the mechanism through which FINRA's BrokerCheck programme achieves its investor protection purpose — the CRD registration and disclosure data that member firms file through the Form U4 and Form U5 requirements of FINRA Rule 1010 is of limited investor protection value if investors are unaware that BrokerCheck exists and how to access it. By requiring member firms to remind every customer annually of BrokerCheck's existence and how to access it, Rule 2267 closes the awareness gap between the information that is publicly available and the investors who need it.
The core obligation of Rule 2267 is straightforward — every member firm must provide each customer with the BrokerCheck hotline number, the FINRA website address, and the notification of the investor brochure availability at least once per calendar year in writing.
The annual frequency — not less than once every calendar year — ensures that customers receive a regular reminder of BrokerCheck's availability throughout their account relationship rather than only at account opening when the information may be lost among the volume of initial account documents. The annual reminder is particularly valuable for customers who may not have used BrokerCheck at account opening but who subsequently develop concerns about their registered representative or who wish to verify credentials after receiving an unexpected recommendation or experiencing an unexpected loss.
The written delivery requirement — in paper or electronic form — ensures that customers receive the BrokerCheck information in a format they can retain and refer to when needed, rather than only hearing it mentioned verbally in a context where they may not retain the specific contact information. Electronic delivery satisfies the written requirement — consistent with the broader framework of electronic communication with customers that applies throughout the FINRA rulebook.
The annual notification may be included within other written communications to customers — such as the periodic account statements required by FINRA Rule 2231, annual tax reporting documents, or other routine customer communications — rather than requiring a separate standalone document dedicated solely to the BrokerCheck information. This flexibility in delivery vehicle reduces the compliance burden on member firms while ensuring that the required information reaches customers through the normal channels of customer communication.
Beyond the annual written notification, Rule 2267's implementation framework requires member firms to include readily apparent references and hyperlinks to BrokerCheck on their websites — ensuring that customers who interact with the firm through digital channels have immediate access to BrokerCheck from the same online environment where they conduct their account activities.
The website requirement reflects the digital transformation of financial services — as more investors interact with their broker-dealers primarily or exclusively through online platforms and mobile applications, the annual written notification alone is insufficient to ensure that digitally-engaged customers are aware of BrokerCheck when they need it. Requiring BrokerCheck references on member websites ensures that customers who research their firm online or who access their accounts through the firm's digital platforms are exposed to BrokerCheck information in the context where it is most immediately useful.
The hyperlink requirement — directing website visitors directly to BrokerCheck rather than merely mentioning its existence — reduces the friction between customer awareness and customer use, making it easier for investors to act on their awareness of BrokerCheck by accessing it immediately from the firm's website without having to separately navigate to FINRA's site.
Understanding what BrokerCheck provides — and why Rule 2267's promotion of customer awareness of it serves a genuine investor protection purpose — is essential context for understanding the rule's significance within the broader FINRA regulatory framework.
BrokerCheck is FINRA's free online tool accessible at brokercheck.finra.org that enables any member of the public to research the professional background of any registered representative or broker-dealer in the United States securities industry — without charge, without registration, and without any requirement to identify oneself as a user. The information available through BrokerCheck includes the registered person's current and previous registrations with FINRA member firms, all states and jurisdictions where they hold or have held registration, all qualification examinations they have passed, their complete employment history at FINRA member firms over the past ten years, and all disclosure events reported through their Form U4 and Form U5 filings — including regulatory actions, customer complaints, arbitration proceedings, criminal matters, and financial events.
The breadth and depth of information available through BrokerCheck gives investors the ability to make genuinely informed decisions about the financial professionals with whom they entrust their assets — not based merely on the professional's self-presentation but on a comprehensive regulatory record that includes both positive credentials and negative history. A customer who checks BrokerCheck before opening an account with a new registered representative may discover prior customer complaints, regulatory sanctions, or employment terminations that would significantly affect their decision about whether to proceed with the relationship.
The investor protection value of BrokerCheck is diminished if investors are unaware of its existence — which is precisely the problem Rule 2267 is designed to address. Research has consistently found that investor awareness of BrokerCheck is lower than regulators and investor advocates would prefer — many investors who could have protected themselves from harm by checking BrokerCheck before entering a broker-dealer relationship did not do so because they did not know the resource existed. Rule 2267's annual notification requirement directly addresses this awareness gap.
Rule 2267 is the public-facing component of the registration and disclosure system whose foundational infrastructure is established by FINRA Rule 1010 — the rule governing the electronic filing of Form U4 and Form U5 through the Central Registration Depository.
The registration information and disclosure data that member firms file through Form U4 when registering associated persons — and through Form U5 when those persons terminate their registration — flows into the BrokerCheck database that Rule 2267 requires member firms to make customers aware of. The comprehensive background information that BrokerCheck provides to investors is the direct product of the Form U4 and Form U5 filing requirements — making Rule 2267 and Rule 1010 complementary components of the same investor protection framework.
Without the data collected through Form U4 and Form U5 there would be no BrokerCheck — the database would be empty. Without the annual notification requirement of Rule 2267 the data in BrokerCheck would have limited investor protection value — because investors unaware of its existence would not use it. The two rules together create a complete investor protection system — Rule 1010 ensuring that comprehensive registration and disclosure data is collected and maintained, Rule 2267 ensuring that investors know the data exists and how to access it.
Rule 2267 provides a limited exemption from the annual written notification requirement for introducing firms that are parties to carrying agreements — under specified conditions where the carrying firm takes responsibility for providing the BrokerCheck notification to customers.
When an introducing broker-dealer introduces customer accounts to a carrying firm — and the carrying firm maintains the ongoing customer relationship, holds customer assets, and provides account statements and other ongoing customer communications — the carrying firm may be better positioned to fulfil the annual BrokerCheck notification obligation than the introducing firm. The exemption allows for a rational division of customer communication responsibilities between introducing and carrying firms — ensuring that customers receive the required notification without requiring duplicative notifications from both firms.
The exemption is conditioned on the carrying firm actually providing the BrokerCheck notification — the exemption does not eliminate the notification obligation, it allocates it to the firm in the best position to fulfil it. Member firms relying on this exemption must ensure through their carrying agreements that the notification obligation is clearly assigned and that the carrying firm is fulfilling it — compliance with Rule 2267 cannot be disclaimed simply by introducing customer accounts to a carrying firm without confirming that the notification is being made.
Member firms must address the Rule 2267 annual notification requirement in their written supervisory procedures required by FINRA Rule 3110 — establishing systematic processes for ensuring that every customer receives the required BrokerCheck notification at least once per calendar year and documenting compliance with the annual notification schedule.
The supervisory process for Rule 2267 compliance is typically integrated with the annual customer communication cycle — using account statement mailings, annual disclosure packages, or other systematic annual customer contacts as the vehicle for delivering the BrokerCheck notification. Compliance departments must track the annual notification schedule, ensure that the notification reaches every customer account, and maintain documentation confirming that the required notifications were delivered within the calendar year.
FINRA Rule 2267 is tested on the Series 7 and Series 65 examinations in the context of investor education and protection, BrokerCheck, and the annual written notification obligations applicable to member firms.
The key points to retain are these.
FINRA Rule 2267 — Investor Education and Protection — requires every member firm to provide each customer in writing at least once every calendar year with the FINRA BrokerCheck hotline number, the FINRA website address, and a statement notifying the customer of the availability of an investor brochure describing BrokerCheck. The annual written notification may be included within other routine customer communications — such as account statements required by FINRA Rule 2231 — rather than requiring a separate standalone document.
BrokerCheck — accessible at brokercheck.finra.org — is FINRA's free online tool enabling any member of the public to research the professional background, registration history, examination record, and disciplinary history of any registered representative or broker-dealer in the United States. The information in BrokerCheck is populated by Form U4 and Form U5 filings made through the Central Registration Depository under FINRA Rule 1010 — making Rules 1010 and 2267 complementary components of the same investor protection framework. Member firms must also include readily apparent references and hyperlinks to BrokerCheck on their websites serving retail investors — ensuring that digitally-engaged customers have immediate access to BrokerCheck from the online platforms where they conduct their account activities. A limited exemption from the annual written notification is available for introducing firms whose carrying firms take responsibility for providing the BrokerCheck notification to shared customers.
