The SEC updated its Investor Bulletin to provide tips for investors to choose a financial professional.
The Investor Bulletin recommended that investors:
- make sure the financial professional is licensed – unlicensed, unregistered persons commit much of the investment fraud in the United States;
- find out if the products and services available are appropriate;
- understand how investors will pay for services and products, as well as how their financial professionals will get paid;
- ask about the financial professional's experience and credentials and look up their professional designations by using FINRA's Professional Designations page; and
- ask the financial professional if he or she has had a disciplinary history with a government regulator or had customer complaints.
Also, the Investor Bulletin outlined key questions for hiring a financial professional in an "Investor Checklist" which includes: (i) expectations of the relationship, (ii) experience and background, (iii) products, and (iv) payments and fees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
