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Checking Out A Broker – FINRA’s Broker-Check

By Erwin J. Shustak Esq of Shustak Reynolds & Partners, P.C. posted on Thursday, January 29, 2015.

Too often investors learn of their broker’s true background, and past problems, too late.  FINRA, the Federal Investor National Regulatory Authority, tasked with licensing and overseeing the more than 250,000 brokers in the country, has an easy to navigate tool on its website, www.finra.org, which is the best starting place to find out information about your broker before deciding to hire him or her or do business with a particular firm.  It is a simple name search.  The results, which are instantly displayed in the browser, indicate dates and types of licenses held; firms worked out and employment history and, most of all, whether there are any “disclosure items” for the particular broker or firm.  “Disclosure items” are probably the most important part of the report for the average investor.  They include prior regulatory problems with state or federal regulatory agencies; previous customer complaints and arbitrations brought by former customers and the disposition of those complaints and suits.  Particularly in the world of investing, an ounce of prevention is worth pounds and pounds of cure.  Check out a prospective financial advisor before hiring them and entrusting them with your heard earned money.

Shustak Reynolds & Partners, P.C.’s New York, San Francisco, Irvine and San Diego securities, FINRA and SEC attorneys have extensive experience in representing broker-dealers, registered representatives, investment advisors and individuals in a variety of securities-industry matters, including FINRA arbitrations and SEC and FINRA regulatory investigations and proceedings.  Contact us today for a confidential analysis of your situation.

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