Francisco Faraco’s Tips for Running a Financial Advisor Background Check on FINRA Broker Check

Disclaimer: This article’s content is solely for informational purposes and is not written to be taken as tax, legal, financial, or investment advice., for the sale or purchase of financial securities in the United States of America or any other jurisdiction. The article’s content presents general information without addressing any individual’s circumstances. The article is not written to incorporate all relevant matters discussed or the related law. The author is not liable for any damages claimed from any action you perform based on the information presented in the article.

Francisco Faraco’s Tips for Running a Financial Advisor Background Check on FINRA Broker Check

If you think that the illegal activities of investment professionals and brokers ended the Great Recession, you might be making a costly mistake.

The Broker Check tool by the Financial Industry Regulatory Authority (FINRA) was designed to help investors navigate the increasingly versatile investment landscape.

One of the most reliable sources of information about financial professionals is the Financial Industry Regulatory Authority (FINRA) website. This independent agency is authorized by Congress to provide investors with the necessary information about the firms and individuals they are registered with.

Even if your state’s website has a lot of information about the broker, you can do a financial advisor background check through FINRA Broker Check. As a CFA Charter holder and teaching assistant at the University of Chicago, Faraco sat with us to discuss everything investors should know about running financial advisor background checks.

Here are some red flags you should look out for that may prompt a search on FINRA Broker Check.

Beware of Cold Contacts

Never be solicited by an investment advisor or broker with whom you have never done business. These unsolicited calls, letters, or emails may come from companies you have never heard of, enticing you to attend seminars that promise gifts and lunches.

The Securities and Exchange Commission (SEC) also warns investors about the potential scam artists who use high-pressure tactics to try and convince them to invest.

Do Your Due Diligence

One of the first things you should do when researching a financial professional is to search for the firm and the name of the broker. Doing so will allow you to see various reports of their qualifications and work experience.

You can also try looking through the regulatory agencies directly. These agencies are responsible for regulating the activities of financial professionals. They have the necessary information about the individuals and firms they are registered with.

Although these agencies may have overlapping jurisdictions, they should still be checked to ensure they have the necessary information. Also, they may have different policies regarding the information that they provide.

Using FINRA Broker Check To Run Financial Advisor Background Checks

The FINCA Broker Check hosts a wide range of tools that help investors stay in the loop of who they’re investing with. The solution can help individuals with all forms of experience find information that everyone should know before giving someone their money, such as their criminal history, civil lawsuits, and terminations from previous places of employment.


Investors can instantly access reports to help them make more informed decisions on their investment activities.

Francisco J. Faraco is a CFA Charter holder and teaching assistant at the University of Chicago. Start browsing your way through the FINRA Broker check Francisco Faraco and find out how it can help you.

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