About BrokerCheck Reports

BrokerCheck reports are part of a FINRA initiative to provide information about FINRA-registered firms and brokers to help investors determine whether to conduct, or continue to conduct, business with these brokerage firms and brokers. The information contained within these reports is collected through the securities industry's registration and licensing processes.

What does a BrokerCheck Report contain?

A BrokerCheck Report for a broker contains:

• A report summary that provides a brief overview of the broker and his or her credentials. This summary also functions as the entry point to a more detailed report on the broker.
  
  
• A broker qualifications section that includes a listing of the broker's current registrations, or licenses, and industry exams he or she has passed.
  
  
• A previous employment section that contains two types of information:
• • a list of FINRA-registered securities firms where the broker was previously registered.
    
    
  • the broker's employment history for the last 10 years—both in and outside the securities industry—as reported by the broker.
    
    
• A disclosure section that contains information about any customer disputes or regulatory and disciplinary events on this broker's record. In an effort to remain objective, FINRA lists each incident as reported by securities regulators, the individual broker and any involved firms. Please keep in mind a number of items involve pending actions or allegations that have not been resolved or proven. The presence of this information does not automatically indicate wrongdoing on the part of the broker.

A BrokerCheck Report for a brokerage firm contains:

• A report summary that provides a brief overview of the firm and its practices. This summary also functions as the entry point to a more detailed report on the firm.
  
  
• A firm profile that describes where and when the firm was established, and lists the people and organizations that own controlling shares or directly influence the firm's daily operations.
  
  
• A firm history that details any mergers, acquisitions or name changes affecting the firm.
  
  
• A firm operations section that lists the firm's active licenses and registrations, the types of businesses it conducts and other details pertaining to its operations.
  
  
• A disclosure section that contains information about any arbitration awards or regulatory and disciplinary events on this firm's record. In an effort to remain objective, FINRA lists each incident as reported by both securities regulators and the firm. Please keep in mind a number of items involve pending actions or allegations that have not been resolved or proven. The presence of disclosures does not automatically indicate wrongdoing on the part of the firm.

Who provides the information contained in BrokerCheck?
Information made available through FINRA BrokerCheck is derived from the Central Registration Depository (CRD^®) as reported on the industry registration and licensing forms that brokerage firms and brokers are required to complete.

The forms used by firms, Form BD and BDW, are established by the Securities and Exchange Commission (SEC) and adopted by all state securities regulators and self-regulatory organizations, such as FINRA and the New York Stock Exchange (NYSE). FINRA and the North American Securities Administrators Association (NASAA) establish the Forms U4 and U5, the forms that collect broker information. These forms are approved by the SEC. Regulators provide information via Form U6, which is used primarily to report certain disciplinary history about brokerage firms and brokers.

How current is the information contained in BrokerCheck?
Brokers and firms are required to keep this information accurate and up-to-date (updates typically are required not later than 30 days after the broker/brokerage firm learns of an event). The report data is updated when a firm, broker or regulator submits new or revised information to the Central Registration Depository (CRD). Generally, updated information is available Monday through Friday.

What information is NOT disclosed through BrokerCheck?
Information that has not been reported to the CRD system, or that is not required to be reported, is not disclosed through BrokerCheck. Examples of events that are not required to be reported or are no longer reportable include: judgments and liens originally reported as pending that subsequently have been satisfied and bankruptcy proceedings filed more than 10 years ago. Conversely, certain customer complaint information that is not required to be reported may be disclosed provided certain criteria are met.

Additional information not disclosed through BrokerCheck includes Social Security Numbers, residential history information, and physical description information. On a case-by-case basis, FINRA reserves the right to exclude information that contains confidential customer information, offensive and potentially defamatory language or information that raises significant identity theft or privacy concerns that are not outweighed by investor protection concerns. FINRA Interpretive Material 8310-2 describes in detail what information is and is not disclosed through BrokerCheck.

Under FINRA's current public disclosure policy, in certain limited circumstances, most often pursuant to a court order, information is expunged from the CRD system. Further information about expungement from the CRD system is available in NASD Notices to Members 99-09, 99-54, 01-65, and 04-16.

If you have additional questions, call the BrokerCheck toll-free hotline at (800) 289-9999. This hotline is open Monday through Friday from 8 a.m. to 8 p.m., Eastern Time.