How to check if a financial advisor is licensed in the US
A legitimate advisor expects you to verify their license before handing over a dime. The official checks are free and take only a few minutes.
- Ask the advisor for their full legal name, CRD number, and current firm name.
- Run that name through FINRA BrokerCheck (brokercheck.finra.org) to see licenses, employment history, and customer disputes.
- Check the SEC's Investment Adviser Public Disclosure website (adviserinfo.sec.gov) for investment adviser registrations and ADV filings.
- Visit your state securities regulator's site through NASAA (nasaa.org) for state-issued licenses and any enforcement actions.
- Read the adviser's Form ADV Part 2 and Form CRS to see fees, conflicts, and whether the advisor is a fiduciary.
BrokerCheck: the first stop for brokers
The Financial Industry Regulatory Authority (FINRA) runs BrokerCheck, which covers registered representatives and brokerage firms. A broker passes securities exams and files a Uniform Application for Securities Industry Registration or Transfer (Form U4).
BrokerCheck's search will tell you:
- Whether the individual is currently registered and with which firm
- Their licenses and the exams they passed
- Employment history for the past ten years
- Customer complaints, settlements, arbitrations, and suspended or barred status
Always note the CRD number on the report. Try searching by that number first because it attaches to one specific person and avoids matching problems with common names.
The SEC's IARD: for investment advisers
The Investment Adviser Public Disclosure (IARD) site serves advisers registered with the SEC or state securities authorities. People who give personalised investing advice for a fee generally register as investment advisers under the Investment Advisers Act of 1940.
You should look for two documents on IARD:
- Form ADV Part 1: business structure, assets under management, ownership, and disciplinary history
- Form ADV Part 2: the actual disclosure brochure with fees, strategies, and potential conflicts of interest
This is also where you will find the adviser's status. A fiduciary adviser is expected to put your interests ahead of their own. The registration record also shows whether any state regulator has taken disciplinary action.
What your state regulator adds
BrokerCheck focuses on FINRA-regulated brokers, and IARD on SEC-registered advisers. But many advisors are state-registered only, especially smaller firms. For this you go to your state's securities regulator, often called a securities division or department of commerce.
The North American Securities Administrators Association (NASAA) can connect you to the right agency. State regulators can revoke a license, issue cease-and-desist orders, and publish enforcement actions. Even when the SEC or FINRA handles federal level registration, the states administer a separate registration that a broker must hold before selling to residents.
Run every background check through all three channels, because a person can hold a clean federal record yet have state sanctions that an individual investor would miss.
What one good record and one bad record look like
A record that says go
An advisor with a current registration, a clean work history lasting many years, no disclosures, and a Form ADV Part 2 that clearly explains fees and conflicts gives you solid verification at the simplest level.
Disclosures that deserve extra questions
BrokerCheck reports three main disclosure categories: customer disputes, disciplinary events, and financial or investment disclosures. One unresolved complaint does not necessarily mean the advisor is unfit. Ask for the advisor's written explanation and check how long ago the event occurred.
An event that ends with the advisor barred, suspended, fined, or ordered to pay restitution demands serious caution. Dismissed or denied disputes still appear on the record, so read the narrative summary and do not ignore it.
Two registrations you should not confuse
| Advisor type | Regulator | Main registration | What you can find |
|---|---|---|---|
| Broker (executing trades) | FINRA | BrokerCheck | License status, employment history, disputes |
| Investment adviser (giving advice for a fee) | SEC or state securitites regulator | IARD (Form ADV) | ADV Part 2, fee schedule, conflicts of interest |
A practical checklist before you work with anyone
Before you hand over personal information or a signed check:
- Ask for the person's full legal name and CRD number.
- Run that number in BrokerCheck and IARD yourself, not just through a link the advisor sends.
- Read the advisor's Form ADV Part 2 for fee disclosure.
- Confirm the state registration for the state where you live.
- Question any unexpected gaps in registration status or unexplained disclosures.
- Avoid advisors who refuse to give you their CRD number.
The bottom line
You do not need to rely on an advisor's own word or a shiny website. FINRA BrokerCheck, the SEC's IARD, and your state securities regulator together give you the official record. Verify the person, verify the firm, and read the disclosure documents before handing over any money.
This guide is analysis and education only and is not personalised financial advice.
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