wse-aa ve Int aN MN Research Your Broker As You Would A Stock r (NAPSA)—Investing some time and effort in researching your stockbroker—just as you would if he or she were a security—can pay dividends. That’s the word from experts who say before working with a broker or other financial profes- sional, make sure that person is licensed to sell you an investment. One way to do this is by using a free online tool from the Financial Industry Regulatory Authority (FINRA)called BrokerCheck. FirmsandIndividuals To use the online tool, go to www.finra.org/brokercheck. You can look up a specific firm or investment professional. You can also search by zip code. When researching individuals, the tool can be used to find: *employmenthistory; *approved licenses, registrations, and qualification exams passed; *certain misdemeanor charges and convictions; and disciplinary actions and sanc- tions imposed by FINRA, the SEC or other regulators. When researching a firm, the tool can be used to find: *its address, legal status and types of business it engagesin; *a 10-year history ofall felony charges and convictions, and certain misdemeanor charges and convictions; *disciplinary actions and pro- ceedings initiated by regulators; and *bankruptcy proceedings and arbitration award information. Even if an individual or firm does not have a history of reported problems, the tool can help detect Experts say before working with a brokeror otherfinancial professional, investors should make sure that person is licensed to sell investments. potential red flags. For example, you can see if an individual broker has switched firms frequently over a short period of time, or if the firm has changedits nameoften. The First Step “The first step any investor should take before he or she does business is to use BrokerCheck to do a background search,” said Gerri Walsh, president of FINRA Investor Education Foundation. “Make sure the investment professional is licensed either with FINRAas a registered representative or with the SEC or a state regulator as a registered investment adviser.” It’s also a good idea to check with your state securities regulator, local consumer groups or others who have business relationships with a particular financial professional. FINRAis the largest independent regulator for all securities firms doing business in the United States. For more resources, www.finra.org/investors. visit
