What Is FINRA BrokerCheck?
FINRA BrokerCheck is a free, public, online tool that helps investors research the background and disciplinary history of brokers, brokerage firms and certain investment advisers. BrokerCheck aggregates data from the industry registration and licensing databases — primarily the Central Registration Depository (CRD) and the SEC’s Investment Adviser Registration Depository (IARD) — and displays information an investor can use when evaluating a financial professional or firm. (FINRA: About BrokerCheck; BrokerCheck FAQ)
Key takeaways
– BrokerCheck is a no‑cost tool run by the Financial Industry Regulatory Authority (FINRA) for checking broker and firm records. (FINRA: About BrokerCheck)
– Information shown comes from the CRD and IARD and includes registrations, employment history, qualifications, customer complaints, regulatory actions and certain arbitration outcomes. (FINRA: About BrokerCheck; BrokerCheck FAQ)
– BrokerCheck content covers many firms and representatives (FINRA’s snapshot statistics show thousands of firms and hundreds of thousands of registered reps), but it does not include personal or confidential data that has not been disclosed to the registration system. (FINRA: 2023 FINRA Industry Snapshot; About BrokerCheck)
– Registered brokers and firms are required to update their CRD entries within 30 days; changes then appear in BrokerCheck as soon as the next business day. (BrokerCheck FAQ)
Understanding FINRA BrokerCheck
What it is for
– Preliminary vetting: It’s intended as a first step to help you screen brokers or firms before hiring or when monitoring an existing relationship.
– Not a substitute for due diligence: Use BrokerCheck together with interviews, reference checks, Form ADV (for advisers), state securities regulators and independent research.
Primary data sources
– Central Registration Depository (CRD): the securities industry registration and licensing database that supplies most broker and firm information.
– Investment Adviser Registration Depository (IARD): supplies SEC/state-registered investment adviser information. (About BrokerCheck)
What information does FINRA BrokerCheck provide?
Typical categories you’ll find:
– Identifying information: name, current and past firms, branch offices, and registration status.
– Registration and qualifications: licenses/exams passed, registrations held (e.g., Series 7, Series 63).
– Employment history: current and former employer firms and dates.
– Disclosures: customer complaints, regulatory actions, criminal charges, civil judicial proceedings, bankruptcies, employment termination for cause and certain financial disclosures that have been reported to the CRD.
– Arbitration claims and awards: summaries of customer arbitration claims and awards where information has been reported.
– Firm information: firm description, locations, registration status and regulatory disclosures.
What BrokerCheck does not provide (or limits)
– It does not reveal undisclosed or confidential personal information outside of what’s reported to CRD/IARD. Review the BrokerCheck FAQ and About pages for specifics on limitations and the types of data shown. (BrokerCheck FAQ; About BrokerCheck)
FINRA BrokerCheck additional resources
– FINRA Arbitration Awards Online: detailed searchable arbitration award records.
– FINRA Disciplinary Actions Online: full regulatory action reports.
– State securities regulators: many states maintain searchable registries and can provide additional licensing and disciplinary information. (BrokerCheck FAQ; About BrokerCheck)
How often is BrokerCheck updated?
– Registered brokers and brokerage firms must update their CRD information within 30 days of a change (for required items). Once the CRD is updated, BrokerCheck generally reflects that change as of the next business day. This means recent events reported to the CRD will usually appear quickly. (BrokerCheck FAQ)
What if my broker has complaints listed on BrokerCheck?
How to interpret complaints and disclosures
– Complaints can be filed even if allegations are unproven. FINRA requires that firms report customer complaints alleging misconduct related to sale of financial products, regardless of merit. (About BrokerCheck)
– Look at the details: number of complaints, dates, the nature of allegations (unauthorized trading, unsuitable recommendations, misrepresentations, breach of fiduciary duty, etc.), monetary amounts, and whether complaints were settled, dismissed, or resulted in arbitration award or regulatory action.
– Consider patterns: a single, old complaint may be less concerning than many complaints with similar allegations over a short period.
– Read the broker’s comment: brokers and firms are permitted to add their response or explanation — read those comments to understand context.
– Ask follow‑up questions of the broker and the firm’s compliance department for clarification; ask for documentation about the outcome and the firm’s remediation (if any).
Practical steps if you find complaints or disclosures
1. Gather details from BrokerCheck: copy the disclosure text, dates and any award/settlement amounts.
2. Ask the broker/firm for a written explanation and copies of related documents (e.g., arbitration award, settlement papers).
3. Contact the firm’s compliance department to ask whether the matter is ongoing and how it was resolved.
4. Check FINRA’s Disciplinary Actions Online and Arbitration Awards Online for more detailed records.
5. Consider getting independent legal or financial advice if awards or large settlements are involved or if the pattern suggests serious misconduct.
6. If you believe you’ve been harmed, you can file a complaint with FINRA or your state securities regulator — see contact info on FINRA and state regulator sites.
How can I request a BrokerCheck report?
Options to obtain a report
– Online (fastest): Visit FINRA’s BrokerCheck website and enter the individual’s or firm’s name, CRD number or firm name. Click through to view the profile and export or print the report. (About BrokerCheck; BrokerCheck FAQ)
– Phone, fax or mail: FINRA will provide reports on request by phone, fax or mail. FINRA collects personal contact information only when you request that a BrokerCheck report be mailed to you. Check the BrokerCheck FAQ or FINRA “Contact Us” pages for specific phone numbers and mailing instructions. (BrokerCheck FAQ)
Step‑by‑step online search (practical)
1. Go to FINRA BrokerCheck (search “FINRA BrokerCheck” or use FINRA’s site).
2. Choose “Search for a broker, firm or investment adviser.”
3. Enter the person’s full name (try variations), CRD number if you have it, or the firm name.
4. Review the search results and select the correct individual or firm.
5. On the profile, review tabs/sections such as Overview, Disclosures, Registration & Qualifications, Employment History and Disciplinary Record.
6. Save or print the profile (there is typically an option to download a printable report).
Practical tips for using BrokerCheck effectively
– Use exact name and location to disambiguate common names; CRD number is best when available.
– Verify identities: compare employment history, firm location and license numbers to ensure you’ve selected the correct person.
– Cross‑check with Form ADV (for investment advisers) and state securities regulator records.
– Use BrokerCheck as one element of due diligence — interview the broker, check references, and ask for a written explanation about any disclosures.
– Consider the time frame: recent complaints are more relevant than those from many years ago. Also assess substance and resolution, not just the count.
– Don’t base decisions solely on BrokerCheck: use it alongside performance, fees, credentials, services offered and communication style.
Questions to ask a prospective broker or adviser
– Are you registered with FINRA and/or the SEC? What registrations or licenses do you hold?
– Have you ever been subject to a regulatory action, customer complaint, termination for cause or arbitration? Can you explain the circumstances?
– Do you have any conflicts of interest or receive third‑party payments or incentives?
– Can you provide references from current clients and a sample advisory agreement or client disclosure?
– How will you be compensated (commission, fee, fee‑based) and what are the expected fees/costs for my account?
Limitations and cautions
– BrokerCheck is only as accurate as the information reported to CRD/IARD; errors or delays can occur. (BrokerCheck FAQ)
– It does not replace in‑depth due diligence, personalized advice, or legal counsel when serious issues appear.
– Not every disciplinary matter appears on BrokerCheck if it has not been reported to the registration systems.
References and further reading
– FINRA — About BrokerCheck.
– FINRA — BrokerCheck FAQ.
– FINRA — 2023 FINRA Industry Snapshot (industry statistics cited).
– FINRA — Arbitration Awards Online.
– FINRA — Disciplinary Actions Online.
– State securities regulator websites (varies by state).
If you’d like, I can:
– Walk through a sample BrokerCheck search with screenshots and annotated steps; or
– Review a specific BrokerCheck report (paste the text or a link) and help you interpret the disclosures.