Here is the list that KT wanted me to post for all of you on how to check out a financial advisor Choosing a trustworthy and competent financial advisor is one of the most important steps in securing your financial future, especially as you approach or enjoy retirement. Here are some detailed steps and tips to help you navigate this process: 1. Using the SEC’s Investment Adviser Public Disclosure (IAPD) Website Correctly The SEC’s IAPD website (https://adviserinfo.sec.gov/) is a key resource because it provides registration and disciplinary information about investment advisors and firms. • How to search: You can search by the advisor’s full name or the firm’s name. Make sure you enter the exact spelling—try variations if you don’t find results immediately. • What you’ll find: Registration status, any disciplinary actions, employment history, and sometimes client complaints. • If “nothing was found” appears: This could mean the advisor is not registered with the SEC, which is common for smaller advisors who may be state-registered instead. In that case, you should check your state’s securities regulator website. Checking State Securities Regulators If the advisor isn’t listed on the SEC site, they may be registered at the state level. Each state has its own securities regulator who oversees financial advisors operating within that state. • You can find your state regulator’s contact info via the North American Securities Administrators Association (NASAA) website: https://www.nasaa.org/contact-your-regulator/ • Search their database for the advisor’s name to check for registration and disciplinary history. Using FINRA’s BrokerCheck If the advisor is a broker or registered representative, they should be listed on FINRA’s BrokerCheck website: https://brokercheck.finra.org/ • This tool provides information on brokers’ employment history, licenses, certifications, and any regulatory actions or complaints. • It’s a great complement to the SEC’s IAPD site. Additional Background Checks • Google Searches: As you’ve done, searching the advisor’s name with terms like “lawsuit,” “complaint,” or “disciplinary action” can reveal news or legal issues. • Better Business Bureau (BBB): Check if the advisor or firm has a BBB profile and see their rating and any complaints. • Professional Designations: Verify any certifications (CFP®, CFA, CPA, etc.) through the respective organizations’ directories. • References: Ask the advisor for references from current clients, ideally people in similar financial situations. Understanding the Advisor’s Fiduciary Duty • Confirm whether the advisor is a fiduciary, meaning they are legally obligated to act in your best interest. • Fiduciaries typically provide more transparent and client-focused advice. Interviewing Potential Advisors • Prepare questions about their experience, how they are compensated (fee-only, commission-based, or a combination), and their investment philosophy. •

Posted by Suze at 2025-05-29 10:00:00 UTC