In compliance with the Financial Industry Regulatory Authority Rule 2210, firms' first pages of their websites and any page with professionals' profiles must prominently display a link to BrokerCheck. This rule aims to increase transparency and ensure that investors have easy access to information about the background and qualifications of their financial professionals. Firms in 2022 began adjusting hiring practices and fired brokers with marks on their records to avoid meeting a threshold to qualify for the BrokerCheck disclosure.
BrokerCheck provides information on individual brokers, brokerage firms, and even former brokers that are no longer registered. Investors can use this tool to verify a broker's qualifications, check for any disciplinary actions or complaints, and make more informed decisions about who to trust with their investments. Many advisers we represent are unaware that some of their historical complaints have been revived and reposted on their BrokerCheck profile. The good news is that brokers have the opportunity to offer their side of the story and respond to any negative information on their record.
FINRA BrokerCheck is a free, online tool that helps individuals research brokers, investment firms, and financial advisers. It allows investors to see a comprehensive overview of a broker's professional background, including employment history, qualifications, certifications, and any disciplinary actions taken against them. By conducting due diligence through BrokerCheck, investors can protect themselves from potential fraud, misconduct, or incompetence.
Brokerage industry self-regulatory organization FINRA has won approval for its proposal to start identifying firms with significant disciplinary issues on BrokerCheck. This initiative aims to provide investors with more transparency and help them make better-informed decisions when choosing a brokerage firm. It also puts pressure on firms to maintain high ethical standards and avoid any behavior that could harm their reputation.
You can look up any broker in the BrokerCheck database, but the picture isn't complete. While BrokerCheck provides a wealth of information, it's essential to supplement this research with additional sources and due diligence. Investors should also consider factors such as a broker's track record, investment philosophy, and client reviews before making a decision.
Unlicensed, unregistered persons commit much of the investment fraud in the United States. Always check the background of any financial professional to make sure they are properly registered and qualified to provide investment advice. BrokerCheck is a valuable tool for verifying a broker's credentials and ensuring that they have a clean disciplinary record.
In 2010, FINRA amended Rule 8312 to require all customer complaints, including historic complaints, to be disclosed on a broker's BrokerCheck profile. This change was designed to provide investors with a more complete picture of a broker's track record and help them make more informed decisions about who to trust with their money. By reviewing a broker's complaints history on BrokerCheck, investors can identify any red flags or potential risks before entering into a professional relationship.
