A broker or financial advisor plays a significant role in managing your financial assets and sometimes making investment decisions on your behalf. By conducting thorough research and due diligence, you can ensure that the professional you wish to hire has a good track record, follows ethical practices, and aligns with your investment goals and preferences. Moreover, researching the advisor or broker can also help you understand their fees, services, and regulatory compliance. This helps in avoiding potential fraud or mismanagement of funds and ensures that your investments are in safe hands.
BrokerCheck is a free service that lets you look into the records and past performance of brokers and advisors. The service can also be used to get information on brokerages and advisor firms. It offers all the essential information on the professional so you can make an informed decision.
Read below to find out more about BrokerCheck, and an overview of how investors can use it to evaluate financial professionals and firms.
If you’re looking for qualified professional advisors who can help you manage and grow your finances, consider using the free advisor match service.
FINRA BrokerCheck is a tool that any investor can use to find out more about the professional background of a broker, investment advisor, brokerage firm, or advising firm. The tool is offered and regulated by the Financial Industry Regulatory Authority (FINRA), a private corporation that regulates member brokerage firms and exchange markets.
FINRA BrokerCheck is simple to use and takes very little time. You can go to the platform at www.finra.org/brokercheck and enter the individual or firm's name you wish to look up. You can narrow down your search by entering other details, like the location of the individual or firm. Based on the results, you can then generate a report which will contain all information on the professional.
FINRA BrokerCheck uses information from two databases:
This is a registration and licensing database. It includes details on registration and licensing forms filled out by brokers, firms, and regulators.
IAPD is a Securities and Exchange Commission (SEC) database that includes information, such as employment history, disciplinary actions, arbitration awards, etc., of investment advisors and firms. All advisors are required to submit these filings to the online Investment Adviser Registration Depository system of the SEC.
The reports from BrokerCheck can sometimes contain a notation that the person is under dispute. This usually happens when the broker or firm in question may have raised a dispute due to incorrect information on the platform.
If the information provided by BrokerCheck is factually misleading, brokers and firms can submit a dispute to FINRA by filling out a dispute form. The claims are investigated by FINRA, if eligible and the information is updated on the platform, if necessary. The dispute notification will reflect on the portal until the investigation is complete and all information has been updated.
However, it is essential to note that only disputes on factual information can be investigated and corrected by FINRA. Some matters that may be open to interpretation are not entertained by FINRA.
FINRA BrokerCheck can help investors find out core information about brokers and investment advisors. It offers the following benefits to investors:
Along with being a boon for investors, the platform is also of significance for brokers, investment advisors, and firms. These professionals can use the platform to attract new clients. Professionals with a clean record on BrokerCheck can reach out to more customers and upscale their business quickly. Further, the platform also ensures the information on the professional is accurate at all times. Individuals and firms can raise a dispute anytime in the case of incorrect or misleading factual details. This helps them maintain authenticity and transparency.
While running a check on a financial advisor or broker on the platform, you must keep the following things in mind:
Here are some tools that can help you confirm your choice:
Hiring a professional investment advisor or broker can help you achieve financial freedom, sort out your financial concerns, choose the best investment options for your needs, and plan for the future without unnecessary hassles and stress. However, for all of this to be true, it is necessary for you to choose someone you can rely on. It is common for investors to fall for scams. However, this should not stop you from hiring a financial advisor or broker. Instead, you can use the right tools and measures, such as FINRA BrokerCheck to investigate the person or firm in question and be sure of the choice you make. If you do not wish to use BrokerCheck, it is essential to use other trustworthy tools when looking for financial advisors.
Use the free advisor match service to find a qualified and worthy broker or investment advisor to ensure you have a dependable professional in your journey of financial independence. All you need to do is answer a few simple questions on your financial needs, and the match tool can help connect you with advisors that are best suited to help you reach your financial goals and requirements.
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The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice.
A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.