- August 17, 2020
- Investor Education
Whether you are a seasoned investor searching for a new financial advisor or are new to investing and interested in working with a stockbroker or financial advisor who can advise you accordingly, it is critical that you take an interest in potential financial advisors’ experience.
A good way to do this is by reviewing your financial advisor’s Central Registration Depository (CRD). Continue reading to learn more about what a financial advisor’s CRD contains and what steps you might take if your advisor has an unscrupulous history.
What Is the Central Registration Depository?
The CRD and FINRA‘s Brokercheck system contain many pieces of critical information about registered stockbrokers and financial advisors across the country.
Not only will Brokercheck and the CRD contain information about previous disclosures, complaints decisions about these disclosures, where the broker has previously worked, how long they have been registered, and other pertinent information, there are also records that show any criminal and civil activity that the broker in question may have been the subject of.
As an investor, it is critical that you have a complete understanding of the financial advisor who will be handling your funds. You need to be able to trust your stockbroker.
Irresponsible or reckless stockbrokers can often cause significant stock losses, which could have a dramatic impact on your life. By keeping a close eye on the CRD, you will have a better chance of avoiding financial advisors who may ultimately cause you to lose money.
What to Do if You Find Disclosures on Your Financial Advisor’s CRD
There are a few different options you have if you are unhappy with the information that you find on your stockbroker’s CRD and Brokercheck records. It really depends on what your previous relationship is, if any, with the financial advisor.
If you have a long-standing relationship with the broker, you may want to speak with your lawyer about what the best path is for you. It may or may not be in your best interests to discuss your concerns with your broker, particularly if you have also noticed activity in your accounts that is a cause for concern.
However, if you are simply shopping for a financial advisor and their CRD or Brokercheck records are less than stellar, it may be a better option to continue your search and find one who does not have prior disclosures, criminal activity, or civil claims brought against them. Keep in mind that ultimately you want to be able to trust that your investor is always going to prioritize your financial interests over their own.
Contact a Respected FINRA Arbitration Lawyer
If your financial advisor has misled you, taken advantage of you, or otherwise caused substantial investment losses, you may be able to recoup these losses by working with an experienced FINRA arbitration lawyer at Wolper Law Firm, P.A.. You can give our office a call at 800.931.8452 or fill out the quick contact form below when you are ready to schedule a free consultation with our team.
Attorney Matthew Wolper
Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]