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Background Check Your Financial Adviser

Posted By Jim On 03/09/2007 @ 4:12 pm In Investing | 3 Comments

Thinking about handing over some of your hard earned cash to an adviser or firm? Or have you already handed over your cash to an adviser or firm? Do a background check on the person to see if their on the up and up by using these resources:

NASD’s BrokerCheck [3] system has “the professional background, registration/license status and disciplinary history … [of] nearly 5,100 registered firms and more than 660,000 brokers.” This only works for brokers, most advisers won’t be on this unless they’re a registered broker as well. It basically gives you the skinny on the firm, prior names, where they’re registered, what licenses they have, tc.

  • NASD Arbitration & Mediation [4] search site will let you do a search on all the disputes over a certain time period anyone has had with any financial institution that went through the NASD arbitration process.

North American Securities Administrators Association [5] will list the regulators in your state and if you contact your state’s regulator [6] they can provide all sorts of juicy information on that broker or firm. Not 100% sure how powerful this is because you actually have to contact someone to use it.

Lastly, a Investment Adviser Public Disclosure form [7] must be filed with the state or the SEC by anyone looking to do business in the area. Their search form [8] is very powerful and quite fast.

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[3] NASD’s BrokerCheck: http://www.nasd.com/InvestorInformation/InvestorProtection/ChecktheBackgroundofYourInvestmentProfessional/index.htm

[4] NASD Arbitration & Mediation: http://nasdawardsonline.nasd.com/search.aspx

[5] North American Securities Administrators Association: http://www.nasaa.org

[6] contact your state’s regulator: http://www.nasaa.org/QuickLinks/ContactYourRegulator.cfm

[7] Investment Adviser Public Disclosure form: http://www.adviserinfo.sec.gov

[8] search form: http://www.adviserinfo.sec.gov/IAPD/Content/Search/iapd_OrgSearch.aspx

Thank you for reading!