BrokerCheck Frequently Asked Questions
1. How can I check the background of a broker or brokerage firm?
The easiest way for you to check the background of brokers and brokerage firms you plan to work with is through FINRA BrokerCheck, an online database that provides information about brokers and brokerage firms. FINRA provides information (1) on brokers who are currently registered with FINRA or who have been registered within the last two years and (2) firms who are currently, or were previously, registered with FINRA. You can find out, among other things, whether your broker is licensed in your state to conduct business or whether he or she has been sanctioned by securities regulators for violations of investment-related regulation(s) or statute(s). While FINRA BrokerCheck should be your first stop for information, you should also consider consulting your state securities regulator, local consumer and investment groups, or others who have established business relationships with a particular broker.
2. What is FINRA?
FINRA is a non-profit regulatory organization charged with overseeing and enforcing regulations within the securities industry. FINRA licenses brokers and registers brokerage firms, writes rules to govern their behavior, examines them for regulatory compliance and disciplines those who fail to comply.
3. Why does FINRA offer the BrokerCheck service?
FINRA is dedicated to creating a safer environment for investors in today's complex investment landscape. To that end, consistent with its responsibilities under the federal securities laws, FINRA has adopted rules for disclosing information about FINRA-registered brokerage firms and brokers to help investors determine whether to conduct, or continue to conduct, business with these brokerage firms and brokers.
4. How can I request a BrokerCheck Report?
You can request a BrokerCheck report from FINRA in any of the following ways:
5. What is the cost for a BrokerCheck Report?
FINRA BrokerCheck reports are free.
6. Will the broker or brokerage firm know I am checking on them?
No. Neither the broker nor the brokerage firm is made aware that you are requesting a report.
7. Does FINRA collect any of my personal information?
FINRA will collect your personal information only in those situations where you request that a BrokerCheck report be mailed to you.
8. Is there a limit to the number of searches I can perform?
No. However, FINRA BrokerCheck requires you to complete an authentication page before you view your first report and after every ten reports.
9. What is the source of the information that is provided through BrokerCheck?
Information made available through FINRA BrokerCheck is derived from the Central Registration Depository (CRD®), the securities industry online registration and licensing database, as reported on industry registration/licensing forms brokers, brokerage firms and regulators complete.
10. How often is the information about brokers and brokerage firms updated?
Brokers and brokerage firms are required to keep their information up-to-date; generally, that means brokers and brokerage firms should update information not later than 30 days after learning of an event. The BrokerCheck report data is updated when a brokerage firm, broker or regulator submits new or revised information to the CRD system. Generally, updated information is available on BrokerCheck Monday through Friday.
11. How do I use BrokerCheck?
Simply perform a BrokerCheck search after accepting FINRA BrokerCheck terms and conditions. Once you perform a search, you can view a report summary on a brokerage firm or broker. You then have the option to download, print, or click through a complete report about a firm or broker’s background. The BrokerCheck report reflects information that FINRA requires brokers, brokerage firms, and regulators to report as part of the securities industry’s registration and licensing process.
12. Why am I experiencing difficulty accessing certain BrokerCheck Web pages?
In most cases the technical difficulties experienced in accessing BrokerCheck are related to how a user's PC/computer is set-up. In order to access the BrokerCheck Program you must have cookies enabled on your computer. Cookies are strings of text that transfer information between Web Browsers and Web Servers. There are several uses for cookies. For the purposes of the BrokerCheck system, cookies are utilized to help with back-end interaction, which ultimately improves the utility of the system.
Below are some general guidelines that will help you ensure you have enabled cookies on your Web browser.
Microsoft Internet Explorer 6.0+
- Select "Internet Options" from the Tools menu.
- Click on the "Privacy" tab.
- Click the "Default" button (or manually slide the bar down to "Medium") under "Settings".
- Click "OK".
Mozilla Firefox (1.0 final release and earlier)
- Go to the "Tools" menu.
- Select "Options".
- Select the "Privacy" icon in the left panel.
- Check the box corresponding to "Allow sites to set cookies".
- Click "OK" to save changes.
13. Why can’t I view the BrokerCheck report (PDF)?
Macintosh users cannot view the BrokerCheck PDF reports using the standard viewer that Macintosh provides. In order to view the report, you may install a free version of Adobe Reader. Please note that in order to successfully install the Adobe Reader, you must select the appropriate operating system, version, and language from the dropdown options.
14. Why did I get 'no search results' for the broker or brokerage firm I was checking?
There could be a number of reasons why the brokerage firm or broker you're looking for is not listed, such as:
15. How can I find the contact information for a broker or brokerage firm?
Contact information, including corporate addresses, is provided in the BrokerCheck reports. Also, a complete list of FINRA-registered brokerage firms, with contact information, is available here.
16. Can I check the background of a broker who has not been registered with FINRA within the last two years?
No. BrokerCheck provides information only on individuals who are currently registered with FINRA or have been registered with FINRA within the last two years. Information on a broker that has not been FINRA-registered in the last two years may be available from your state securities regulator.
17. How can I obtain a list of registered brokers, their brokerage firm affiliation and location?
FINRA does not publish a list of registered brokers. However, you can look up individual brokers through BrokerCheck.
18. How can I verify if a brokerage firm is registered with FINRA?
You can verify that a brokerage firm is FINRA-registered by checking the Registrations section of the firm's BrokerCheck report. Every brokerage firm on FINRA BrokerCheck, is or was, registered with FINRA. However, there will not be current information provided on those firms that are not presently registered with FINRA.
19. What are the most common FINRA rule violations alleged against brokers or brokerage firms in disciplinary actions initiated by FINRA?
The most common FINRA rule violations alleged against brokers or brokerage firms in disciplinary actions initiated by FINRA are:
Conduct Rule 2110 – Standards of Commercial Honor and Principles of Trade
Business/Bad Faith Misconduct
This rule requires FINRA-registered firms to observe high standards of commercial honor and just and equitable principles of trade. The rule prohibits registered firms from making false, misleading, or exaggerated statements or claims or omitting material information in all advertisements and sales literature directed to the public.
Conduct Rule 3010 – Supervision
Supervision
This rule requires FINRA-registered firms to establish and maintain a system to supervise the activities of their registered representatives, registered principals, and other associated persons expected to comply with applicable securities laws, regulations, and FINRA rules. These supervisory systems must include written procedures that designate a registered representative or principal with supervisory responsibilities. They must also include an annual discussion about relevant compliance matters with registered representatives and registered principals. Final responsibility for proper supervision rests with the firm.
Procedural Rule 8210 – Provision of Information and Testimony and Inspection and Copying of Books
Request for Information
For the purpose of an investigation, complaint, examination, or authorized proceeding, Procedural Rule 8210 grants an adjudicator or FINRA staff the right to require a registered firm, person associated with a registered firm, or person subject to the Association's jurisdiction to provide information (orally, in writing, or electronically), and to testify under oath with respect to any matter involved in the investigation, complaint, examination, or proceeding. An adjudicator or FINRA staff also has the right to inspect and copy books, records, and accounts of the registered firm or person with respect to any matter involved in the investigation, complaint, examination, or proceeding. As stated by the rule, no registered firm or person can fail to provide information or testimony, nor can they refuse an inspection or copying of books, records, or accounts.
Conduct Rule 3040 – Private Securities Transactions of an Associated Person
Private Securities Transactions
This rule states that, prior to participating in any private securities transaction, an associated person must provide written notice to his firm describing in detail the proposed transaction and his proposed role. The person must state whether he has received or may receive selling compensation in connection with the transaction. If the person is receiving compensation, the firm must approve or disapprove the transaction in writing. If the transaction is approved, the firm will record the transaction on the books and records, and the firm will supervise the person's participation in the transaction as if the transaction was executed on behalf of the firm.
Membership and Registration Rule IM1000-1 – Filing of Misleading Information as to Membership or Registration
Filing Misleading Information
This rule concerns the filing of inaccurate or misleading information as a registered representative. It states that filing information with FINRA with respect to membership or registration as a Registered Representative that is incomplete or inaccurate so as to be misleading -- or the failure to correct such a filing -- may be considered conduct that is inconsistent with just and equitable principles of trade. When discovered, such conduct may warrant appropriate disciplinary action.
FINRA Conduct Rule 2310 – Recommendations to Customers (Suitability)
Suitable Customer Recommendations
This rule permits FINRA-registered firms to recommend a securities transaction to a customer only if the recommendation suits the customer's investment portfolio, financial situation and needs. Prior to the execution of a transaction recommended by a retail customer, a firm must make reasonable efforts to obtain the retail customer's financial status, tax status, investment objectives, and any other reasonable information needed to make recommendations to the customer.
FINRA Conduct Rule 2120 – Use of Manipulative, Deceptive or Other Fraudulent Devices
Manipulative, Deceptive or Fraudulent Devices
This rule prohibits FINRA-registered firms from effecting any transaction, purchase or sale of any security by any manipulative, deceptive or other fraudulent means.
FINRA Conduct Rule 3030 – Outside Business Activities of an Associated Person
Outside Business Activities
This rule prohibits people associated with an FINRA-registered firm in any registered capacity from being employed by, or accepting compensation from, any other person as a result of any business activity, other than a passive investment, outside the scope of his relationship with his employer firm, unless he has provided prompt written notice to the firm.
FINRA Conduct Rule 3110 – Books and Records
Books & Records
This rule requires registered firms to make and preserve books, accounts, records, memoranda, and correspondence in conformity with all applicable laws, rules, regulations, statements of policy, and with rules of the FINRA and the Securities and Exchange Commission. The record keeping format, medium, and retention period must comply with the Securities Exchange Act of 1934.
FINRA Marketplace Rule 6955 – Order Data Transmission Requirements
Order Data Transmission
This rule requires each FINRA-registered firm or a reporting agent to transmit all applicable order information that is required to be recorded under FINRA rules to the Order Audit Trail System (OATS). Order information must be transmitted in an electronic form to a receiving location designated by FINRA.
FINRA Rule 6130 – Trade Report Input
Trade Reporting Input
This rule requires firms to report all transactions in eligible securities to the NASDAQ Market Center. Participants must transmit trade reports to the NASDAQ Market Center for transactions in NASDAQ securities within 90 seconds after execution, or a cancelled trade within 20 minutes after execution. The reporting party is responsible for ensuring that the trade reports are accurate and contain all applicable required data for both the reporting party and the identified non-reporting party. The parties must report cancelled trades and comply with the established deadlines for reporting these trades.
FINRA Rule 2110H2 (Under FINRA Conduct Rule IM-2310-2, Fair Dealing with Customers) – Misuse of Customer's Funds or Securities
Misuse/Conversion
This rule requires firms to observe high standards of commercial honor and just and equitable principles of trade. This means that firms are prohibited from unauthorized use or borrowing of a customer's funds or securities, forgery, non-disclosure or misstatement of material facts, and manipulations and various deceptions. These activities are also subject to the civil and criminal laws and sanctions of federal and state governments.
FINRA Rule 2330 – Customer's Securities or Funds
Customers Securities/Funds
This rule prohibits FINRA-registered firms or persons associated with a firm from engaging in the improper use of a customer's securities or funds. It also requires them to adhere to Securities and Exchange Commission rules regarding obtaining possession and control of securities, and the maintenance of cash reserves.
FINRA Rule 1120 – Continuing Education Requirements
Continuing Education
This rule concerns continuing education requirements. It states that, subsequent to their initial qualification and registration with FINRA, registered persons must participate in continuing education in order to remain current on new regulations, amendments to existing rules, and new products. Each registered person must complete the regulatory element of the requirements, which is determined by FINRA and will be appropriate to either registered or principal status of the person subject to the rule. If a registered firm has direct contact with customers (in the conduct of the firm's securities sales, trading and investment banking activities), research analysts, and with the immediate supervisor of such persons, the firm shall maintain a continuing and current education program for its registered persons to enhance their securities knowledge, skills, and professionalism. A firm must administer and maintain records documenting the content and completion of the programs by covered registered persons. FINRA may require a firm to provide specific training to its covered registered persons in such areas, as FINRA deems appropriate.
Conduct Rule 3070 – Reporting Requirements
Customer Complaint Report Requirements
According to Conduct Rule 3070, each person associated with a registered firm must promptly report to the firm the existence of any of the conditions set forth below, and the firm must promptly report such conditions to FINRA. Each firm must report to FINRA statistical and summary information regarding customer complaints in detail specified by FINRA.
- Has been found to have violated any provision of any securities law or regulation.
- Is the subject of any written customer complaint involving allegations of theft or misappropriation of funds or securities or of forgery.
- Is named as a defendant or respondent in any proceeding brought by a regulatory or self-regulatory body alleging the violation of any provision of the Securities Exchange Act.
- Is denied registration or is expelled, enjoined, directed to cease and desist, suspended or otherwise disciplined by any securities, insurance or commodities industry regulatory or self-regulatory organization.
- Is indicted, or convicted of, or pleads guilty to, or pleads no contest to, any felony; or any misdemeanor that involves the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary, larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds, or securities, or a conspiracy to commit any of these offenses, or substantially equivalent activity in a domestic, military, or foreign court.
- Is a director, controlling stockholder, partner, officer or sole proprietor of, or an associated person with, a broker, dealer, investment company, investment advisor, underwriter or insurance company which was suspended, expelled or had its registration denied or revoked.
- Is a defendant or respondent in any securities or commodities-related civil litigation or arbitration award or settlement for an amount exceeding $15,000.
- Is the subject of any claim for damages by a customer, broker, or dealer which is settled for an amount exceeding $15,000.
- Is associated in any business or financial activity with any person who is subject to a "statutory disqualification" as that term is defined in the Securities Exchange Act.
- Is the subject of any disciplinary action taken by the firm against any person associated with the firm involving suspension, termination, the withholding of commissions or imposition of fines in excess of $2,500.
Conduct Rule 2210 – Communications with the Public
Communications with the Public
This rule requires FINRA-registered firms to adhere to FINRA's requirements for the approval, record keeping, filing, review, and content of communications with the public. "Communications with the public" consist of advertisement, sales literature, correspondence, institutional sales material, public appearance, and independently prepared reprint.
20. What is a Broker Comment?
A Broker Comment is information provided by a person who is not currently registered with FINRA but is still subject to BrokerCheck because he or she was registered with FINRA within the last two years. Such persons may submit a Broker Comment to update or provide context to information disclosed through BrokerCheck.
21. Will the information that BrokerCheck provides tell me at which firm branch office a broker is located?
Yes, the address(es) of any FINRA-registered branch(es) where a broker is currently conducting business is provided on the Report Summary page of the BrokerCheck report, as well as in the full report under the Branch Office Location section.
22. How do I use the Simple Search function to look up a broker?
The Simple Search screen provides four options for how to conduct your search: (1) first name and last name; (2) first, middle and last name; (3) middle and last name only; or (4) nickname and last name.
23. How can I determine which qualifying exams my broker has taken?
A summary is provided in the Brokers Qualification section of the Report Summary. On the full report for your broker, you can view a complete listing of all securities exams a broker has passed.
24. How can I use the arbitration case number I see on the BrokerCheck report to obtain information about that specific arbitration?
Clicking on the hyperlinked arbitration case number in your report will take you to FINRA Arbitration Awards Online. Once you accept the terms and conditions, the full text of the arbitration award will be available to you. You may view more information about FINRA Arbitration Awards Online on the FINRA Web site.
25. How can I find out about a broker's previous employment?
FINRA BrokerCheck displays all the FINRA firms with which the broker was previously registered under the Registration and Employment History section of the report.
