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Finding A New Financial Advisor
How Well Do You Know Your Financial Advisor?
- Has your Financial Advisor ever filed for bankruptcy?
- Does your Financial Advisor have a criminal record?
- How many clients have filed complaints against your Financial Advisor?
- How many clients have successfully sued your Financial Advisor?
- How much money has been paid in settlements as a result of claims filed against your Financial Advisor?
- Has your Financial Advisor been reprimanded or sanctioned by the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the National Association of Securities Dealers, the New York Stock Exchange or any state regulator?
- Have punitive damages ever been assessed against your Financial Advisor?
- Has your Financial Advisor ever been fired by a former employer?
- If a former employer fired your Financial Advisor, would you like to know the reason(s) they were fired?
- Did your Financial Advisor graduate from college?
- Did your Financial Advisor attend college?
- Are your aware that Financial Advisors are not required to have attended college?
- Do you know how many times your Financial Advisor took their licensing examinations before passing?
- Are you certain that your Financial Advisor is licensed in the state in which you reside?
Would you like your Financial Advisor to disclose the answers to these questions?
- You do not have to be embarrassed by asking these questions.
- All of this information is public!!!
- Obtaining the information is easy.
- First, you need your Financial Advisor’s CRD number. In order to obtain this information go to: http://www.finra.org/InvestorInformation/InvestorProtection/p005882 . Just follow the instructions and you will have the information in moments. Alternatively, you can call the Financial Industry Regulatory Authority at 1.800.289.9999. Simply provide your Advisor’s name and current employer, and you will be able to obtain the CRD number.
- Next, contact your state securities regulator and request a copy of the Financial Advisor’s CRD Report. In order to find your state’s regulator, visit http://www.nasaa.org/about_nasaa/2062.cfm . Florida residents can request the CRD Report by sending an email directly to: electronic_licensing@fldfs.com . Please remember to include the Financial Advisor’s name and CRD number.
How can you use the information contained in the CRD Report?
- If one has researched the background of a current Financial Advisor and is satisfied with the results, there may not exist any reason to do anything.
- However, if unhappy with the results, one can use the same tools to research the background of other potential Financial Advisors. In addition to researching the backgrounds of employees of full-service FINRA Member Firms, one can also consider employing other types of investment advisors, including bank trust departments, independent financial advisors, online brokerage firms and discount brokerage firms. Each individual must decide for himself or herself how to manage their savings. There is no one best answer. It is up to each person to decide his or her own best course. However, there is no dispute that the more information one has regarding their investment advisor, the more intelligent the decision that one can make!
- Good luck!!!