Understanding FINRA BrokerCheck
Utilize FINRA BrokerCheck for free online research on brokers, investment firms, and advisors. As the biggest non-governmental securities regulator in the U.S., FINRA supervises 3,500 brokerage firms, 160,000 branch offices, and 625,000 registered representatives.
Basics
Individuals can utilize FINRA BrokerCheck, which is a complimentary online resource, to research brokers, investment firms, and financial advisers. It provides a wide range of information, including descriptions, services, credentials, sanctions, and registrations. This helps individuals choose and evaluate financial advisors and brokerage firms.
Administered by FINRA, the primary non-governmental securities regulator in the U.S., BrokerCheck gathers data from the Central Registration Depository (CRD) and the Investment Adviser Registration Depository (IARD) database, which are comprehensive sources for broker, brokerage, and investment adviser information.
About FINRA BrokerCheck
Incorporating data on about 3,500 brokerage firms, 160,000 branch offices, and 625,000 registered securities representatives, FINRA BrokerCheck serves as an informative tool. It guides users in effectively utilizing and handling the available information. For investors, BrokerCheck facilitates understanding a firm's background, uncovering any past issues, and identifying favored options among investors.
General Info Provided by FINRA BrokerCheck
FINRA BrokerCheck offers information on brokers presently registered with FINRA or within the last decade, presenting:
- A summary of the broker and their credentials.
- Broker qualifications, encompassing active licenses, current registrations, and completed exams.
- Registration and work history, including a roster of affiliated securities firms.
- Disclosures about criminal records, regulatory actions, civil judicial proceedings, and customer complaints.
Investment Firm Details in FINRA BrokerCheck
BrokerCheck provides details about investment firms, including:
- A summary report of the firm and its history.
- A profile describing its leadership and ownership.
- A record of acquisitions, mergers, or name changes.
- Information about licenses, registrations, business activities, and operational disclosures.
- Data on arbitration awards, disciplinary events, and financial matters are in the disclosures section.
BrokerCheck only includes disclosed CRD data, excluding personal or confidential information, judgments, or liens.
Other Resources
When considering hiring a broker or investment adviser, besides using BrokerCheck, individuals should explore their state securities regulators' resources. These regulators oversee and may mandate the registration of brokers and advisers. Additionally, FINRA offers two more databases: FINRA Arbitration Awards Online and FINRA Disciplinary Actions Online.
Conclusion
FINRA BrokerCheck is a valuable tool for individuals to research brokers, investment firms, and financial advisers. It provides a wide range of information, including descriptions, services, credentials, sanctions, and registrations, and allows users to effectively utilize and handle the available information. However, it is important to supplement this information with resources from state securities regulators and other FINRA databases to make informed decisions when hiring a broker or investment adviser.