Glossary term
BrokerCheck
BrokerCheck is FINRA's free public tool for researching brokerage firms, brokers, investment adviser firms, and investment adviser representatives.
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What Is BrokerCheck?
BrokerCheck is FINRA's free public search tool for researching the background of brokerage firms, brokers, investment adviser firms, and investment adviser representatives. It helps investors check registration, employment history, licenses, exams, and certain disclosure events.
BrokerCheck is a practical first step before working with a financial professional. It does not replace due diligence, but it can reveal important information that marketing materials or personal referrals may not show.
Key Takeaways
- BrokerCheck is operated by FINRA.
- It can show registration, employment history, qualifications, and disclosures.
- It covers brokers and brokerage firms, and also provides access to investment adviser information.
- Disclosure events can include customer disputes, disciplinary actions, financial events, or criminal matters.
- A clean BrokerCheck report is useful, but not a guarantee of quality or honesty.
How BrokerCheck Works
A user searches by a person's name, firm name, CRD number, or other identifying information. BrokerCheck returns a report with registration history, licenses and exams, employment history, and reportable disclosures when available.
For brokerage firms and registered representatives, BrokerCheck draws from registration and disclosure systems used in the securities industry. For investment advisers, BrokerCheck can connect users to information from the SEC's Investment Adviser Public Disclosure system.
Investors can use BrokerCheck to confirm that a professional is registered, review employment history, look for disciplinary or customer dispute disclosures, and compare what a person says with what appears in regulatory records.
It is especially useful before opening an account, transferring assets, accepting a rollover recommendation, or following a referral from a friend, employer, or online source.
What BrokerCheck Can Show
Item | What it may show | Why it matters |
|---|---|---|
Registration | Current or past securities registrations | Confirms regulatory status |
Exams | Industry qualification exams passed | Shows licensing background |
Employment | Registered firm history | Helps identify movement or gaps |
Disclosures | Customer disputes, discipline, financial events | Highlights potential red flags |
Limits and Misunderstandings
BrokerCheck is not a rating system. It does not tell users whether a professional is a good fit, whether fees are reasonable, or whether advice is appropriate.
It also may not include every concern a customer could care about. Some matters may not be reportable, may be resolved without admission, may be expunged, or may require reading the underlying details carefully.
BrokerCheck should be used alongside questions about compensation, conflicts, services, fiduciary status, credentials, account custody, investment approach, and written agreements.
The Bottom Line
BrokerCheck is a valuable background-check tool for financial professionals and firms. It should be part of the due diligence process, especially before opening an account or trusting someone with investment decisions.