FINRA BrokerCheck

Key takeaways
* FINRA BrokerCheck is a free online tool to research brokers, brokerage firms, and investment advisers.
* It draws mainly from the Central Registration Depository (CRD) and the SEC’s Investment Adviser Registration Depository (IARD).
* Reports include registrations, qualifications, employment history, and disclosures such as customer complaints, regulatory actions, and arbitration awards.

What is FINRA BrokerCheck?

FINRA BrokerCheck helps investors vet financial professionals and firms. It’s administered by the Financial Industry Regulatory Authority (FINRA) and provides public records about brokers’ and firms’ registrations, credentials, employment history, and disciplinary history drawn from industry registration databases.

How BrokerCheck works

• Data sources: Primary data come from the CRD (for brokers and firms) and the IARD (for investment advisers).
• Reporting timeline: Registered firms and brokers must update CRD information within 30 days of changes; updates generally appear in BrokerCheck the next business day.
• Access: Reports are available online and can also be requested by phone, fax, or mail (mail requests require some personal information).

Information included in a BrokerCheck report

For individual brokers (current or within the last 10 years)
* Report summary and credentials (licenses, exams passed).
* Registration and employment history (current and past firm associations).
* Disclosures: customer complaints, criminal or regulatory actions, civil judicial actions, arbitration awards, and other disciplinary events.

For firms
* Firm summary and profile (leadership and ownership).
* History of mergers, acquisitions, or name changes.
* Operations: licenses, types of business, and operational disclosures.
* Disclosures: arbitration awards, regulatory or disciplinary events, and financial matters.

What BrokerCheck does not include
* Personal or confidential information not disclosed to the CRD.
* Certain non-disclosed CRD entries, and typically not judgments or liens.

How to interpret complaints and disclosures

• Context matters: consider the number of complaints, time span, and the nature of allegations (e.g., unauthorized trading, unsuitable recommendations).
• Review the broker’s or firm’s comments on the complaint.
• Ask the firm’s compliance department for details when needed.
• Use BrokerCheck alongside other checks—state securities regulator records, FINRA Arbitration Awards Online, and FINRA Disciplinary Actions Online—to get a fuller picture.

Additional resources and next steps

• Check state securities regulator databases for adviser or broker registration and disciplinary records.
• Search FINRA’s supplementary databases for arbitration and disciplinary histories.
• If you find concerning disclosures, request documentation from the firm or adviser, consult the firm’s compliance office, and consider seeking independent legal or financial advice before acting.

Concluding note

BrokerCheck is a practical first step for due diligence on brokers and firms, but it should be used in combination with interviews, references, and other regulatory and state resources to make informed decisions.