FINANCIAL BROKERS & ADVISORS
When selecting a broker or investment advisor, research the person's education
and professional history as well as the firm they work for. Be sure to ask
the following questions:
- Have they worked with others who have circumstances
similar to yours?
- Are they licensed in your state? Your state
securities administrator lists individuals and firms that are registered
in your state. Ask if the regulatory office has any other background information.
You can find
out more by visiting www.nasaa.org.
- Have they had any run-ins with regulators
or received serious complaints from investors? Call your local state securities
regulator or the Securities and Exchange Commission (SEC). You can also
check out the Financial Industry Regulatory Authority (FINRA) Broker Check
to find licensing, employment, and disciplinary information. Or call FINRA
toll-free at 1-800-289-9999.
- How are they paid? Is it an hourly rate, a
flat fee, or a commission that depends on the investments you make? Do
they get a bonus from their firm for selling you a particular product?
- What are the fees for setting up and servicing
your account?
If you are seeking more information or have an investment advisor problem
that you are unable to resolve directly, you can contact the SEC or FINRA.
Source: Federal Citizen Information Center