Quick overview

Before you give money or sign a contract, confirm the seller is properly registered. Different financial products fall under different regulators. A registered broker-dealer or investment adviser is subject to oversight, disclosure rules, and disciplinary enforcement. A registered insurance or mortgage agent answers to state regulators. Verifying registration helps you limit fraud risk, understand protections (like SIPC coverage in some cases), and know where to report problems.

Who regulates which products

  • Broker-dealers and brokers (selling stocks, bonds, many packaged securities): FINRA oversight; public records via FINRA BrokerCheck (https://brokercheck.finra.org/). See BrokerCheck for individual brokers’ CRD numbers and complaint history. (FINRA)
  • Registered investment advisers (fee-based advice, managed accounts): SEC or state registration; search the SEC’s Investment Adviser Public Disclosure at https://www.adviserinfo.sec.gov/ and review Form ADV disclosures. (SEC)
  • Public companies and many securities issuers: SEC EDGAR for corporate filings and disclosures at https://www.sec.gov/edgar/searchedgar/companysearch.html. (SEC)
  • State securities regulators: licensing and local enforcement—find your state office via the North American Securities Administrators Association (NASAA) at https://www.nasaa.org/. (NASAA)
  • Insurance agents and brokers: state insurance departments (NAIC and state insurance portals list licensing). Search via the National Association of Insurance Commissioners at https://www.naic.org/. (NAIC)
  • Mortgage lenders and loan originators: state licensing agencies and the Nationwide Multistate Licensing System (NMLS Consumer Access) at https://www.nmlsconsumeraccess.org/; CFPB also has consumer resources. (NMLS, CFPB)
  • Consumer protection and complaint filing: Consumer Financial Protection Bureau (CFPB) at https://www.consumerfinance.gov/ and state consumer protection offices. (CFPB)

All links above point to primary government or industry resources. Use them first—company websites and marketing materials can misstate status.

Step-by-step verification checklist (practical)

  1. Identify the product type and the firm’s described role (broker, adviser, issuer, insurer, lender).
  2. Ask the firm for identifying details: full legal name, registration or license numbers, CRD number (for brokers), Form ADV number (for advisers), and the firm’s physical address and entity type.
  3. Use the regulator’s public database:
  1. Review the record carefully for:
  • Registration status (active, inactive, suspended, revoked).
  • Disciplinary history, customer complaints, arbitration awards, or enforcement actions.
  • Ownership and affiliated entities (sometimes fraudsters use similar names).
  • Dates of registration and recent address changes.
  1. Cross-check the firm’s website details, business licenses, and online reviews. Confirm contact phone numbers and that the physical address is not a mailbox or virtual office.
  2. If an adviser suggests a private placement or an exempt product, ask for written disclosures and confirm exemptions with the SEC or your state regulator.

How to interpret what you find

  • Active registration with no disciplinary history: generally a good sign, but not a guarantee of ethics or competence.
  • Active registration with recent complaints or sanctions: read the details—some complaints are minor; enforcement actions are more serious. Look for patterns over time.
  • No registration found: treat offers as high risk. Firms that should be registered (brokers, advisers handling client funds or securities) but aren’t may be committing securities law violations.
  • Registered in a different name: check for DBA (doing-business-as) filings or corporate affiliates. Scammers often use variations of legitimate firm names.

Documents and identifiers to request (and why they matter)

  • CRD number (Central Registration Depository), used in BrokerCheck to pull broker and firm records.
  • Form ADV (Part 1 and Part 2) for investment advisers; it lists services, fees, conflicts, and disciplinary history.
  • Proof of state insurance license for agents or agencies.
  • Offering documents for private placements (and an explanation of the exemption they claim).
    Asking for these shows you know what to expect—and a legitimate firm will provide them or tell you where to find them.

Red flags and warning signs

  • Pressure to act now or to wire money immediately.
  • Offers of guaranteed high returns with low risk.
  • Refusal to provide registration numbers, Form ADV, or clear company identifiers.
  • Use of personal email addresses instead of corporate domains, or only a mobile number.
  • Multiple recent address changes or shell-company structures that hide ownership.
  • Company claims protection that doesn’t exist (e.g., “SIPC insures your returns”). SIPC protects customers if a firm fails, not investment performance—verify details at https://www.sipc.org/.

What to do if you find problems or can’t find registration

Examples from practice

In my work helping clients verify firms, the most common safe-guard that stops fraud is a quick FINRA or SEC search. One client received an unsolicited offer to invest in private notes. The firm gave a personal name and a website with no corporate filings. BrokerCheck showed no registration; SEC IAPD returned nothing. We stopped the deal and reported the contact. That single verification step likely prevented a six-figure loss.

Extra checks and due diligence beyond registration

  • Review public filings (Form ADV, 10-Ks, prospectuses) for clarity about fees, personnel, and conflicts.
  • Ask about custody arrangements and how client funds or securities are held. Custodians should be established firms; verify the custodian separately.
  • Confirm professional credentials (CFP, CPA) on the credentialing body’s directory. Credentials don’t replace registration but add context.
  • Read independent reviews and check resources like the Better Business Bureau, but weigh them against regulatory records.

Internal resources and further reading

Final practical tips

  • Do the search yourself on primary regulator sites—don’t rely solely on what the salesperson says.
  • Keep a short record (screenshot or PDF) of the registration page and any Form ADV or BrokerCheck results for future reference.
  • When in doubt, pause. Real firms expect scrutiny and will help you verify their credentials.

Reporting and escalation (quick contacts)

Professional disclaimer: This article is educational only and not individualized legal or investment advice. If you face significant financial decisions, consider consulting a qualified attorney or registered financial professional. Authoritative sources used: U.S. Securities and Exchange Commission (SEC), FINRA, NASAA, CFPB, SIPC, and NAIC.