subject: Is Your Financial Advisor Licensed? [print this page] Is Your Financial Advisor Licensed? Is Your Financial Advisor Licensed?
Don't assume the advisor who wants to sell you investment advice, services, or products holds current licenses. If you find the advisor is unlicensed, there is a good chance he wants to sell you an unregistered product that is an investment scam.
When it comes to your assets you should not accept the sales claims of advisors. You should demand proof that they are the competent, ethical professionals they say they are, they hold current licenses, and their firms are real financial service companies.
Step one is ask the advisor for his CRD (Central Registry Depository) number. Use the number to check the advisor's compliance record at FINRA.org.
Step two is to require identification that confirms the advisor's identify. That could include a Driver's License, diplomas from reputable schools, and certificates that document membership in industry associations.
Step three is to make an unannounced visit to the advisor's place of business. Talk to the office manager to confirm the information that was provided to you by the advisor.
Step four is avoid selecting advisors based on personalities, sales pitches, references, company names, and promises of high returns for low risk. These deceptive sales tactics are designed to get you to lower your guard.
The bottom line is that you always want to know who you're hiring to manage your financial future. Make sure your advisor provides you with written documentation versus just verbal conversations. Always look out for your best interests because you can't guarantee that the person you hire will also do so. Taking these precautions is a great step to hiring the right person to oversee your finances.
