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Editor: Debra G. Speyer, Esq.
Profession: Attorney

Category: Avoiding Investment Fraud

I have previously told investors how to get background information about a financial consultant (stockbroker) who is registered with the NASD. One goes to the NASD website. There you can find information about that financial consultant's licenses, employment history, arbitrations against him or her and disciplinary history.

There are many financial consultants who are not registered with the NASD. They are instead registered with the SEC. More than 11,000 investment advisor firms and 173,000 investment advisors are registered with the SEC. To check on the firm's background, go to the SEC website under "Check Out Brokers & Advisers" under Investor Information. That will take you to a firm's "Form ADV." That
form tells an investor if the firm has had regulatory problems or lawsuits. To get an individual investment advisor's background information, one can do that by asking the investment advisor or contacting your State Securities Regulators.