The Financial Industry Regulatory Authority’s FINRA Broker Check is a free, online tool that enables investors to research the professional backgrounds of brokers, brokerage firms, and investment adviser representatives. Launched in 2001, BrokerCheck promotes transparency and helps safeguard investors by providing easy access to registration status, licensing history, regulatory actions, customer disputes, and more. Whether you’re choosing a new advisor or simply vetting your current one, understanding how to use BrokerCheck empowers you to make informed decisions.
1. What Is FINRA BrokerCheck?
BrokerCheck is FINRA’s public database of:
- Individual Brokers & Advisors: Their employment history, licenses held, and educational background.
- Brokerage Firms: Firms’ registration status, firm history, and disciplinary events.
- Regulatory & Disciplinary Actions: Actions taken by FINRA, the SEC, state regulators, or other authorities.
- Customer Complaints & Arbitration: Details of customer-initiated disputes, arbitrations, and settlements.
Accessible via brokercheck.finra.org or the FINRA mobile app, BrokerCheck aggregates data from FINRA’s Central Registration Depository (CRD).
2. Why Use BrokerCheck?
- Due Diligence
Verifying a broker’s credentials and disciplinary history is a fundamental part of assessing trustworthiness and competence. - Transparency
Immediate access to regulatory and customer dispute information helps you gauge potential red flags before investing. - Ongoing Monitoring
You can set up email alerts for updates, so you’re notified if your advisor’s record changes.
3. How to Search in BrokerCheck
- Go to the Website or App
Visit brokercheck.finra.org or download the FINRA BrokerCheck app (iOS/Android). - Enter Identifiers
Search by name, firm name, or CRD number. Including a state or city narrows results if multiple individuals share a name. - Select the Right Profile
BrokerCheck displays matches; click the correct entry to view the full report. - Review Sections
- Registration & Employment: Dates and locations of past and current registrations.
- Licenses & Exams: Exams passed (Series 7, 63, etc.) and licenses held.
- Disclosures: Regulatory actions, customer-initiated disputes, civil or criminal proceedings.
- Qualifications & Education: Degrees, designations, and professional credentials.
4. Interpreting Disclosures
Not every disclosure indicates wrongdoing, but understanding context is vital:
- Customer Disputes
Arbitrations or complaints may stem from misunderstandings or market losses rather than misconduct. Review outcomes—dismissals or small settlements are less alarming than large awards. - Regulatory Actions
Fines, suspensions, or bars reflect proven violations of FINRA or SEC rules. Consider the severity and timing of the infraction. - Other Proceedings
Civil injunctions or criminal convictions suggest serious concerns. Always read the detailed narrative provided.
5. Tips for Effective Use
- Cross-Reference Other Sources
Check the SEC’s Investment Adviser Public Disclosure (IAPD) for registered investment advisers, and review state regulator databases for additional context. - Look Beyond Disclosures
A clean record doesn’t guarantee competence; assess references, professional experience, and fee structures. - Monitor Regularly
Even if your advisor has no prior disclosures, set email alerts so you’re aware of any future events. - Ask About Disclosures
If you find a complaint or action, speak directly with the broker to understand the circumstances and resolution.
6. What BrokerCheck Doesn’t Show
- Complaints That Didn’t Escalate: Informal disputes resolved without arbitration or regulatory involvement.
- Customer Losses Due to Market Fluctuations: Losing money in a market downturn isn’t a reportable event unless a complaint is filed.
- Private or Confidential Settlements: Certain confidentiality agreements may limit detail disclosure.
Always supplement BrokerCheck with interviews, references, and performance metrics.
FINRA BrokerCheck is a powerful, user-friendly resource for anyone considering a financial professional. By providing transparent access to licensing, employment, and disciplinary histories, it helps you weigh both the credentials and the integrity of brokers and firms. Use BrokerCheck as the first step in your due diligence process—and remember to combine its insights with additional research, direct conversations, and personal referrals to ensure you choose the advisor best suited to your goals and risk tolerance.