Check Your Broker’s FINRA Disclosures

In the interests of investor protection, the Financial Industry Regulatory Authority (FINRA) has established an internet portal called BrokerCheck for investors to check public information about “the professional backgrounds of current and former FINRA-registered brokerage firms and brokers.” This includes those financial advisors who are registered with investment adviser firms.

The intention of FINRA was to provide this information to help investors to decide whether they should enter into relationships with a particular brokerage firm and/or financial advisor, or continue to maintain an existing relationship based on current disclosure available on the FINRA Broker Check website.

According to the FINRA Broker Check website the information is derived from the Central Registration Depository (CRD®), the securities industry online registration and licensing database. The information is obtained through forms that brokers, brokerage firms and regulators complete as part of the securities industry registration and licensing process. The latest disclosures contain information on approximately 1.3 million current and former FINRA-registered brokers and 17,400 current and former FINRA-registered brokerage firms.

To learn more about a current or potential brokerage firm and/or financial advisor or to learn about any public information about a brokerage firm and/or financial advisor on the FINRA Website for:

• Employment History;
• Securities Licenses Held;
• State Licensed to Conduct Business;
• Bankruptcies and Credit Problems;
• Outside Business Activities;
• Regulatory Actions; and
• Customer Complaints.