Direct answer: FINRA BrokerCheck (finra.org/investors/have-a-problem/verify-a-broker) is the regulatory database for researching the background of brokers and investment firms registered with FINRA. It contains employment history, licensing, regulatory actions, customer complaints, and any criminal disclosures for FINRA-registered individuals and firms. For investment advisers (not FINRA-regulated), the SEC's IAPD database provides equivalent information.
FINRA BrokerCheck: A Source Guide for Investors
Key Takeaways
- BrokerCheck covers only FINRA-registered brokers and brokerage firms; investment advisers (RIAs) who are SEC-registered are covered by the SEC's IAPD tool at adviserinfo.sec.gov, not BrokerCheck.
- A broker's CRD (Central Registration Depository) number is the unique identifier across all regulatory databases; looking up a broker by CRD number returns complete regulatory history.
- Disclosures on BrokerCheck include customer complaints (settled, pending, and dismissed), regulatory actions by FINRA or state regulators, criminal charges and convictions, and civil judicial matters.
- A settled customer complaint is not necessarily evidence of fraud or wrongdoing; firms often settle small claims to avoid legal costs. Multiple settled complaints in similar categories are more meaningful than a single isolated complaint.
- State securities regulators also maintain databases; brokers and advisers with state registration (those managing less than $100 million may only be state-registered) may not appear in IAPD but will appear in the state's NASAA database at nasaa.org.
What BrokerCheck Contains
A BrokerCheck report for an individual includes: registration history (current and prior registrations with FINRA-member firms), states where licensed to conduct securities business, examination history (which securities licenses the individual holds), and disclosure history. The disclosure section is the most investor-relevant: it shows customer disputes (formal complaints, arbitration, civil litigation), regulatory events (formal FINRA or SEC actions, state regulatory actions), financial disclosure (bankruptcies, judgments, liens), and criminal disclosure (charges and convictions for financial crimes and others required to be reported).
How to Interpret Disclosure Events
Not all disclosures indicate misconduct. A dismissed customer complaint means the arbitration panel found no merit; a denied claim is similarly exculpatory. An employer-initiated termination or permitted to resign disclosure is more significant if the stated reason involves allegations of misconduct. Regulatory events that result in fines, suspensions, or bars are the most serious; they indicate FINRA or a state regulator formally found a violation. When reviewing disclosures, note: the number of disclosures, whether they are repetitive (same type of allegation across multiple clients suggesting a pattern), and whether they resulted in sanctions versus dismissal.
What Is Not in BrokerCheck
BrokerCheck does not contain: performance data for the broker's clients, fee schedules, investment philosophy or approach, or any information about the broker's ongoing regulatory standing beyond formal disclosures. It also does not cover advisers who work for non-FINRA-regulated entities (some insurance-based financial products, bank trust departments). For comprehensive due diligence, check BrokerCheck plus IAPD (for RIA activity) plus the state regulator's database plus a general internet search for news coverage.
Investment Adviser Research via IAPD
Investment advisers registered with the SEC or a state securities regulator file Form ADV, available in the IAPD database at adviserinfo.sec.gov. Form ADV Part 1 lists the adviser's business details, client types, regulatory disciplinary history, and key personnel. Form ADV Part 2 (the client brochure) describes investment strategies, fees, conflicts of interest, and the adviser's background in plain language. Form ADV Part 3 (CRS, the relationship summary, required since 2020) is a two-page summary comparing the adviser's services, fees, and conflicts to a broker-dealer. These documents are primary sources for evaluating any investment adviser.
Frequently Asked Questions
Does a clean BrokerCheck record mean an adviser is trustworthy?
BrokerCheck shows only disclosed regulatory history; it does not guarantee quality, ethical conduct, or investment skill. A clean record means no formal regulatory actions or formal customer complaints have been filed, which is a minimum floor but not a recommendation. Evaluating an adviser requires also examining fee disclosure (Form ADV), investment approach alignment with the investor's goals, and independent references.
What should I do if I find a concerning disclosure on BrokerCheck?
Ask the broker or adviser directly about any disclosure before making a decision. FINRA requires that advisers explain disputes; a disclosure with a clear, credible explanation (e.g., a complaint that was investigated and dismissed) is different from one the adviser cannot or will not explain. For serious regulatory sanctions, the disclosure itself is typically self-explanatory; bars and suspensions from FINRA are serious findings.
Is FINRA BrokerCheck the same as the SEC's Investment Adviser Search?
No. BrokerCheck covers FINRA-registered broker-dealers and their registered representatives. IAPD at adviserinfo.sec.gov covers SEC-registered and state-registered investment advisers. If you are working with a dually-registered individual (both a broker and an investment adviser), they will appear in both. It is important to check both databases because many financial professionals hold both registrations and their adviser activity may show regulatory history in IAPD that is absent from BrokerCheck.