Professional License
How to Verify a Financial Advisor's Credentials
"Financial advisor" is not a regulated title — anyone can use it. What matters is the underlying registration and credentials. Here is how to check whether a financial advisor is legitimately registered and whether their disciplinary history is clean.
Quick answer
Use FINRA BrokerCheck (finra.org/brokercheck) for brokers and broker-dealer representatives. Use the SEC Investment Adviser Public Disclosure (IAPD) tool (adviserinfo.sec.gov) for registered investment advisers. Both are free and show registration status, employer history, and any disciplinary actions or customer complaints on record.
Types of financial advisors and their regulators
The regulatory structure for financial advisors depends on what they do:
| Advisor Type | Regulated By | Verify Via |
|---|---|---|
| Broker / Registered Rep | FINRA + SEC | FINRA BrokerCheck |
| Registered Investment Adviser (RIA) | SEC (assets >$100M) or state (assets <$100M) | SEC IAPD or state securities regulator |
| Investment Adviser Representative (IAR) | State securities regulator | FINRA BrokerCheck (also covers IARs) or state |
| Dual-registered (broker + RIA) | FINRA + SEC/state | BrokerCheck + SEC IAPD |
Step 1: FINRA BrokerCheck
FINRA BrokerCheck (finra.org/brokercheck) is the primary public tool for verifying brokers and broker-dealer registered representatives. Search by name or CRD (Central Registration Depository) number. BrokerCheck returns:
- Current registration status and registered firm
- Exam qualifications (Series 6, 7, 63, 65, 66, etc.)
- Employment history for the past 10 years
- Regulatory disclosures — FINRA and SEC actions
- Customer complaints (settlements and arbitration awards)
- Criminal disclosures and civil judgments
- Financial disclosures (bankruptcies, unsatisfied judgments)
BrokerCheck also covers Investment Adviser Representatives registered in states. It is a comprehensive record — even cleared or dismissed complaints remain visible in the disclosure history.
Step 2: SEC Investment Adviser Public Disclosure (IAPD)
For registered investment advisers (firms and individuals not primarily operating through a broker-dealer), search the SEC IAPD at adviserinfo.sec.gov. The IAPD provides access to Form ADV, the registration document that RIAs file with the SEC or state regulators.
Form ADV Part 2 (the "brochure") is the disclosure document advisers must provide to clients. Reading the Form ADV reveals: fee structure, conflicts of interest, disciplinary history, services offered, and investment strategy. Requesting and reading the Form ADV is one of the most informative due diligence steps for selecting a financial adviser.
Common professional designations: what they mean
Financial advisors carry many professional designations — some rigorous, some not. Key credentials to know:
| Designation | Issuing Body | Verify At |
|---|---|---|
| CFP (Certified Financial Planner) | CFP Board | cfp.net/verify |
| CFA (Chartered Financial Analyst) | CFA Institute | cfainstitute.org/en/membership/directory |
| ChFC (Chartered Financial Consultant) | The American College | theamericancollege.edu/designations-degrees/verify |
| PFS (Personal Financial Specialist) | AICPA (CPAs only) | aicpa.org/membership/find-a-cpa |
Red flags in BrokerCheck records
- Multiple customer complaints: Even without findings, patterns of complaints indicate risk
- Regulatory actions: FINRA or SEC sanctions, suspensions, or bars
- Frequent employer changes: Being "fired" or "permitted to resign" from multiple firms is a red flag ("churning" advisors)
- Financial disclosures: Unsatisfied judgments or bankruptcies may indicate poor personal financial management
- Not registered: An unregistered "advisor" is operating illegally if they provide investment advice for compensation
Verify educational credentials for financial roles
Many financial advisory credentials require specific educational backgrounds. Use VerifyED to confirm that a candidate's finance, economics, or business degree comes from a legitimate, accredited institution.
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