BrokerCheck by FINRA is one of the most important free tools available to investors. It allows you to see the professional history of your financial advisor or brokerage firm, including any past complaints, disciplinary actions, or regulatory problems. If you’ve suffered investment losses, using BrokerCheck can help you uncover whether your advisor has a troubling history.
If you or someone you know has been negatively impacted by a broker or financial advisor, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.
Understanding the Basics of BrokerCheck
For many investors, the idea of researching a financial advisor may feel overwhelming. BrokerCheck makes this process simpler by compiling a range of information into one accessible online database. Knowing how the system works can give you confidence when evaluating your advisor.
Key Facts About What BrokerCheck Is
- BrokerCheck is run by FINRA The Financial Industry Regulatory Authority (FINRA), the self-regulatory body that oversees brokerage firms and financial advisors, manages BrokerCheck to promote transparency for investors.
- It’s completely free You don’t have to pay to use BrokerCheck. Anyone can search for a financial advisor or brokerage firm online and access their public report.
- It shows both brokers and firms BrokerCheck covers current and former registered brokers as well as brokerage firms, meaning you can look at the history of both the individual advisor and the company behind them.
By starting with these basics, investors can quickly see why BrokerCheck is considered a powerful first step in understanding an advisor’s background.
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The Information You’ll Find on BrokerCheck
Once you know what BrokerCheck is, the next step is understanding the type of information it reveals. Reports are designed to highlight both routine professional details and potential warning signs.
Facts About the Information Displayed
- Employment history and licenses Reports list where an advisor has worked, how long they’ve been registered, and the licenses they’ve held. This helps you understand their background.
- Disclosure events are included BrokerCheck reports highlight serious red flags such as customer complaints, regulatory actions, criminal charges, bankruptcies, and terminations.
- Termination details may appear If a broker leaves a firm, BrokerCheck can show the reason the firm provided for their departure — information that may be very telling about past conduct.
For an investor, these disclosures often provide the most valuable insights into whether a financial advisor has a history of problems.
How BrokerCheck Works Behind the Scenes
The details shown on BrokerCheck don’t appear randomly — they come from an industry-wide system used by regulators and brokerage firms. Understanding how this information is gathered can help you evaluate its accuracy and reliability.
Facts About the System and Its Process
- BrokerCheck relies on the CRD system All the information comes from the Central Registration Depository (CRD), the national database where firms must file forms about their brokers, including complaints and disciplinary events.
- Firms must update records Brokerage firms are responsible for updating BrokerCheck records when something happens, like a new customer complaint or a broker changing firms.
- Disclosures stay on the record Even if a complaint is dismissed, settled, or closed, it often remains on the BrokerCheck report, giving investors visibility into a broker’s history.
This behind-the-scenes process ensures that BrokerCheck reports reflect a broker’s career in detail — but it also shows how much influence brokerage firms have in shaping what appears.
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What Investors Should Keep in Mind
While BrokerCheck is an invaluable tool, it’s not perfect. Investors need to understand both its strengths and its limitations in order to use it effectively when evaluating financial advisors.
Facts That Highlight Its Limitations and Risks
- A “clean” record doesn’t guarantee safety Some brokers with clean BrokerCheck records may still engage in misconduct. BrokerCheck is one tool among many to evaluate an advisor.
- Expungement can erase information Brokers sometimes attempt to remove disclosures from BrokerCheck through a process called expungement. FINRA made this process stricter in 2023, but some information may still be removed.
- You can check both your advisor and the firm Looking up both your individual financial advisor and their firm gives a fuller picture. A firm’s history of regulatory problems can be just as important as an individual broker’s record.
These final facts are a reminder that BrokerCheck should be used as part of a broader approach to protecting their finances, especially when losses occur.
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How Meyer Wilson Werning Can Help
BrokerCheck can be eye-opening for investors who have lost money and later discover troubling information about their financial advisor or brokerage firm. If you find red flags on your advisor’s BrokerCheck report and suffered investment losses, our team at Meyer Wilson Werning can help you understand your options and pursue recovery. We focus on representing investors — not brokers — and holding financial advisors accountable when they fail their clients. Contact us today to begin your journey to recovery with us.
Frequently Asked Questions
What is BrokerCheck?
BrokerCheck is a free online tool managed by FINRA that allows investors to look up the professional history of financial advisors and brokerage firms, including employment records, licenses, and disciplinary actions.
What kind of information does BrokerCheck provide?
Reports show details such as an advisor’s employment history, regulatory licenses, disclosure events like customer complaints or sanctions, and even termination explanations provided by firms.
Does a clean BrokerCheck record guarantee my advisor is trustworthy?
Not necessarily. While BrokerCheck can reveal red flags, some advisors with “clean” records may still engage in misconduct. It should be used alongside other due diligence steps.
Can brokers remove negative information from BrokerCheck?
Brokers may request expungement of disclosures, though FINRA tightened the rules in 2023. Some information may be removed, but many records remain visible to protect investors.
Why should I check both the advisor and the firm?
Looking at both provides a fuller picture. A firm’s regulatory history or pattern of complaints can be just as important as an individual broker’s record when evaluating your investment risks.
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