How to check a financial adviser's registration and record
Use IAPD, BrokerCheck and your state regulator to confirm registration and read disciplinary history in context.
Anyone can call themselves a “financial advisor”. The title that carries legal weight is investment adviser: a firm registered with the SEC or a state securities regulator, owing its clients a fiduciary duty. Checking that registration, and the record behind it, takes a few minutes.
Step 1: Get the firm's name and CRD number
Every registered adviser, broker-dealer and registered individual has a CRD (Central Registration Depository) number. It is on the firm's Form ADV and Form CRS, and often in the website footer. Searching by CRD avoids confusion between firms with similar names. Every listing here shows the firm's CRD.
Step 2: Look the firm up on IAPD
The SEC's Investment Adviser Public Disclosure site shows whether the firm is currently registered, with whom, and since when. It links to Form ADV Part 1, the Part 2 brochures and, where they exist, disclosure details. Check that the name, address and registration status match what the adviser told you.
Step 3: Understand SEC versus state registration
Registration depends mainly on size. Since the Dodd-Frank Act, advisers with less than $100 million in regulatory assets under management generally register with their home state rather than the SEC, with exceptions. State-registered advisers are overseen by state securities regulators; you can find yours through NASAA's regulator directory. Neither type is “better” — they are regulated by different agencies.
Step 4: Check the people, not just the firm
Look up the individual adviser you'll work with on IAPD and on FINRA's BrokerCheck. BrokerCheck covers people who are, or were, registered with a broker-dealer, and shows their employment history, licensing exams and any customer disputes or regulatory events. If the person is dually registered — both an investment adviser representative and a broker — they may be able to earn commissions in their broker capacity.
Step 5: Read disclosures in context
Form ADV Item 11 asks about the disciplinary history of the firm and its advisory affiliates: criminal matters, regulatory actions, civil proceedings. A “yes” leads to a Disclosure Reporting Page with details. On this site, if a firm answered yes to any Item 11 question, the profile says “Disclosures reported on Form ADV: Yes — see IAPD” and links there. We deliberately don't summarise or score them, because the details matter:
- When did it happen, and has the firm changed ownership or staff since?
- Who was involved — the firm, a former employee, or an affiliate?
- What was the outcome — a dismissed complaint, a settlement, a fine, a suspension?
Ask the adviser to explain any disclosure. A clear, consistent answer is a good sign; defensiveness is not.
Step 6: Check the custodian
Your money should normally be held by an independent qualified custodian — a bank or brokerage — not by the adviser itself. The brochure's custody section and Form ADV say who holds client assets. You should get statements directly from the custodian; compare them with any reports the adviser sends you.
Red flags
- No registration on IAPD, or a name that doesn't match.
- Reluctance to provide Form CRS or the Part 2A brochure.
- Guaranteed returns or pressure to decide quickly.
- Asking you to make checks payable to the adviser personally.
If something seems wrong, contact your state securities regulator or submit a tip to the SEC.