Before you hand someone authority over your money, you have every right to check their record first. The tools exist, they are free, and the full process often takes fewer than 30 minutes. Here is where to look and what to watch for before you sign anything.
Quick Answer: How to Check a Financial Adviser’s Background
If you’re interested in working with an adviser, go to brokercheck.finra.org and search by their name or Central Registration Depository (CRD) number. Review all disclosure events, confirm their registration is active, and verify that their licenses match what they claim to hold. For Registered Investment Advisors (RIAs), also check adviserinfo.sec.gov and request their Form ADV. Always ask for the adviser’s CRD number before your first meeting.
What Is at Stake
A 2016 study found misconduct is a seriously concerning factor when choosing a financial adviser: 7 percent have records for misconduct; at some large firms, more than 15 percent do, and one-third of those are repeat offenders. Firms often fire offenders, but they can be rehired elsewhere, and 30 percent become repeat offenders, especially in areas where incautious consumers dominate.
Fraudulent investment recommendations can cost clients thousands of dollars, but the tools to check all of this are free and maintained by federal regulators.
What Is FINRA BrokerCheck?
BrokerCheck is a free public database run by FINRA (Financial Industry Regulatory Authority). It covers more than 625,000 current and former brokers and more than 150,000 broker-dealer firms. Each record includes:
- Current registration status and active licenses
- Employment history (typically the past 10 years)
- Disclosure events: complaints, disciplinary actions, terminations, and regulatory sanctions
- Exam qualifications and certifications
Access it at brokercheck.finra.org. No account required.
How to Search BrokerCheck: Step by Step
- Go to brokercheck.finra.org
- Enter the adviser’s full name or CRD number (ask for it directly before your first meeting)
- Confirm their registration is currently active
- Click “Disclosure Events” and read each entry in full
- Check employment history for unexplained gaps or frequent job changes
- Cross-check their listed licenses against what they claim to hold
Searching by CRD number is more reliable than a name search. Two advisers can share the same name; CRD numbers are unique to each individual.
How to Read a Disclosure Event
| Event Type | What It Means |
| Customer complaint (settled) | Adviser or firm paid to resolve; no admission of guilt required |
| Customer complaint (dismissed) | Closed without action; may be frivolous or reflect insufficient evidence |
| Arbitration award | A financial judgment issued against the adviser or firm |
| Regulatory action | FINRA, SEC, or a state regulator took formal disciplinary action |
| Employment termination | Fired or resigned while under investigation |
A single settled complaint is not automatically disqualifying. A pattern of similar settlements is a meaningful red flag. Any disclosure involving fraud, theft, or unauthorized trading is grounds to walk away.
Checking an RIA
Registered Investment Advisors (RIAs) who are not also licensed as brokers may have limited records in BrokerCheck. To evaluate them, use the SEC’s Investment Adviser Public Disclosure (IAPD) tool at adviserinfo.sec.gov.
From there you can:
- Verify current SEC or state registration
- Review Form ADV, which discloses fees, conflicts of interest, and disciplinary history
- Confirm whether the adviser holds fiduciary status
RIAs managing $100 million or more in assets register with the SEC. Smaller RIAs register with their state securities regulator. When unsure of which applies, check both.
Verify Credentials Independently
Some advisers list designations they no longer hold or that have lapsed. Confirm each one before you hire:
| Designation | Where to Verify |
| CFP (Certified Financial Planner) | cfp.net |
| CFA (Chartered Financial Analyst) | cfa.org |
| CPA (Certified Public Accountant) | Your state’s CPA licensing board |
Questions to Ask Before You Sign Anything
Legitimate advisers answer these directly:
- What is your CRD number?
- Are you a fiduciary 100 percent of the time?
- How are you compensated? (fee-only, fee-based, or commission-based)
- Have you had any complaints, disciplinary actions, or terminations?
- May I review your Form ADV?
Hesitation or refusal to provide documentation is itself a red flag and should not be overlooked.
When to Consider Walking Away
Seriously think about leaving the meeting if the adviser:
- Refuses to provide their CRD number
- Has multiple complaints or terminations on record
- Cannot verify credentials through official sources
- Pressures you to invest before you have finished your review
- Claims guaranteed returns on any investment
No legitimate investment guarantees a return. That claim alone should set off alarms in your head.
How to Report a Problem
If your research turns up serious concerns, file a report with:
- FINRA: finra.org/investors/have-problem
- SEC: sec.gov/tcr
- Your state securities regulator: nasaa.org
You do not need to be a current client to file a report.
FAQs on Checking Adviser’s Background
What Is a CRD Number and Why Does It Matter?
A CRD (Central Registration Depository) number is the unique identifier assigned to registered brokers and brokerage firms in the United States. Some, like Registered Investment Advisers (RIAs), may be registered only with the SEC or state regulators and not have a CRD number.
Searching CRDs in FINRA’s BrokerCheck is more accurate than searching by name, since two people can share the same name. Ask for their CRD number before your first meeting. A legitimate broker or dual-registered advisor should be able to provide it without hesitation, and looking it up takes under a minute.
What Is the Difference Between a Settled and a Dismissed Complaint?
A settled complaint means the advisor or their firm paid money to resolve a client’s dispute. No admission of guilt is required, but payment signals the claim had enough merit to settle rather than contest. A dismissed complaint was closed without payment or action. Both appear on BrokerCheck. One settlement is not automatically disqualifying, but a pattern of similar settlements is a warning sign before you agree to hire.
Do All Financial Advisers Show Up in BrokerCheck?
BrokerCheck covers FINRA-registered brokers and broker-dealers, along with some investment advisers. Registered Investment Advisors who are not also licensed as brokers may have minimal records there. For those advisers, use the SEC’s IAPD tool at adviserinfo.sec.gov. Checking both databases, along with your state securities regulator, gives you the most complete picture of any adviser’s background and history.
What Is a Fiduciary, and Why Does It Matter?
A fiduciary is legally required to act in your best financial interest at all times. Registered Investment Advisors operate under this standard. Brokers follow a suitability standard, requiring only that a recommendation be appropriate for the client, not necessarily the best option available. Some advisers are dual-registered, meaning fiduciary status may apply only in certain contexts. Always ask whether your adviser acts as a fiduciary 100 percent of the time and get that confirmation in writing.
The Epoch Times copyright © 2026. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
