U.S. Court of Appeals Ruling Supports FINRA Background Checks

The U.S. Court of Appeals for the District of Columbia reversed a lower court that had ruled a stockbroker could have a customer’s complaint purged from his record.

Federal or state securities laws require brokers, investment advisers and their companies to be licensed or registered, and to make important information public. Regulators caution that before investors give their money to anyone or pay for any investment advice, they should check the company’s or individual’s record.

To help investors make those checks, FINRA has set up a database called BrokerCheck (brokercheck.finra.org). The information, which is free, is derived from the Central Registration Depository. Lubin said you also should contact your state’s securities regulator, which often has information not listed in the central depository. To do that, go to www.nasaa.org.

Story