Many investors are unaware that they can lookup information about their financial advisor’s regulatory and customer complaint history by going to FINRA’s BrokerCheck website at http://brokercheck.finra.org/. A new study by business school professors at the University of Chicago and University of Minnesota underscores the importance of investors using BrokerCheck before working with a particular financial advisor.
The study, entitled “The Market For Financial Adviser Misconduct,” found that 7 percent of financial advisors have been disciplined for misconduct that ranges from putting clients in unsuitable investments to trading on client accounts without permission. The study also shows that of the financial advisors in the industry who have a material misconduct on their FINRA BrokerCheck, 73% are still employed a year after the event was reported. This number is alarming, particularly when considering that other studies have shown that brokers with a history of misconduct are five times more likely to engage in similar activities in the future.
At Meyer Wilson, we encourage investors to use all the resources available to them before making any investment decisions. We know the consequences of broker misconduct and how it can impact investors, and we want investors to arm themselves with the tools they need to help protect themselves. .
If you invested and lost money because of misconduct by your financial advisor, contact our securities fraud lawyers today for a free consultation. We can work with you to help you recover your investment losses.