What Is FINRA BrokerCheck?
Let me explain FINRA BrokerCheck to you directly: it's a free online tool designed to help you research brokers, investment firms, and financial advisers. You can access a range of information here, such as descriptions of services, credentials, any sanctions, and registrations, all of which can assist you in selecting and vetting a financial advice provider or brokerage firm.
This tool is provided and managed by the Financial Industry Regulatory Authority, or FINRA, which stands as the largest non-governmental regulator of securities firms in the United States. The data you find in BrokerCheck primarily comes from the Central Registration Depository (CRD), the key online database for securities industry registrations and licensing, along with the Securities and Exchange Commission's Investment Adviser Registration Depository (IARD).
Understanding FINRA BrokerCheck
When you use FINRA BrokerCheck, you're tapping into information on about 3,378 brokerage firms, 150,647 branch offices, and over 620,882 registered securities representatives. It's essentially an explanatory resource that guides you on how to use and interpret the provided data effectively. As an investor, you can uncover a firm's history, spot any past indiscretions, and even identify popular choices among other investors.
What Information Does FINRA BrokerCheck Provide?
For brokers who are currently registered with FINRA or have been within the last 10 years, BrokerCheck offers a report summary including their credentials, qualifications like current registrations, licenses, and passed exams, as well as their registration and employment history with lists of associated securities firms. It also covers disclosures on criminal, regulatory, civil judicial, or customer complaint activities.
When it comes to investment firms, you'll find a report summary of the firm and its history, a profile on leadership and ownership, details on acquisitions, mergers, or name changes, an operations section with licenses, registrations, business types, and operational disclosures, plus a disclosures section on arbitration awards, disciplinary events, and financial matters. Keep in mind, BrokerCheck only includes information disclosed to the CRD system—it doesn't have personal, confidential details, or judgments and liens.
FINRA BrokerCheck Additional Resources
Beyond BrokerCheck, I recommend you also check resources from your state securities regulators, as they oversee and may require registrations for brokers or advisers. FINRA offers supplementary databases like FINRA Arbitration Awards Online and FINRA Disciplinary Actions Online to give you a fuller picture.
How Often Is BrokerCheck Updated?
Registered brokers and firms must update their professional and disciplinary information in the CRD within 30 days, and that information appears in BrokerCheck the next business day. This ensures the data you see is reasonably current.
What If My Broker Has Complaints Listed on BrokerCheck?
Brokers have to report customer complaints to FINRA if they allege misconduct in selling financial products, even if the claims lack merit. You should evaluate the number of complaints, the timeframe, and specifics like unauthorized trading or failed investments. Brokers can add comments, so review those for context on the complaint. Don't hesitate to ask the firm, broker, or compliance department for more details.
How Can I Request a BrokerCheck Report?
You can get FINRA BrokerCheck reports for free online, by phone, fax, or mail. FINRA only collects personal information if you request a mailed report, keeping things straightforward for you.
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