Reducing Your Odds of Financial Loss Starts with Choosing the Right Investment Professional

There are many things that you cannot control in life, but choosing the right investment professional is not one of them. If you are considering hiring an investment professional, such as a broker or financial advisor, you need to take the time to look into his or her background. You are going to be putting your trust into this person and you need to ensure that your best interests will be looked out for.

Even if your friend or family member recommended the investment professional to you, you still need to due your research. There are a lot of great resources available that are easy to use, which will provide valuable insight into a broker or financial advisor’s background and record.

How to Find Information About a Broker or Brokerage Firm
The Financial Industry Regulatory Authority (FINRA) has a free tool that gives investors the capability to look up brokers and brokerage firms. This program, known as BrokerCheck, provides access to the Central Registration Depository (CRD) database. Through BrokerCheck, you can look up information about most brokers and their firms. You can view records of previous complaints or regulatory actions.

If a broker is reluctant to provide you with his or her CRD number, that should be a red flag and an indication that you might want to think twice about hiring this person.

How to Find Information About a Financial Advisor
Some investment advisors will also show up in the CRD database, because they are registered as a broker-dealer or associated with one. Investment advisors are required to register with either the Securities and Exchange Commission (SEC) or a state securities regulator, which is dependant on the amount of client assets they manage.

As you begin checking out a financial advisor, you should request his or her Form ADV. This form contains details about the firm’s business and whether there have been past problems with regulators or clients. Form ADV will also describe the broker’s services, fees and investment strategies.

What to Do if There is a Problem
Even after doing due diligence in the selection of an investment professional, problems can still arise. Sometimes brokers and financial advisors act negligently, which can lead to their investor clients’ financial loss. If you have lost money due to broker misconduct or investment fraud, an experienced broker fraud lawyer at the law firm of David P. Meyer and Associates may be able to help you. We are licensed in Ohio and California and we represent investors nationwide in securities arbitration and litigation claims.

Call us toll-free at 1.866.827.6537 or fill out our contact form for your free case evaluation.