Always Run a Background Check on All Financial Advisors

SGH Wealth Management’s “Read What I’m Reading” Feb 2020 | Feb 7th, 2020

Still today, commission investing is not entirely transparent nor is the internal cost of investing always on their client’s monthly statements. In an unclear industry we add transparency by making sure that our advisors are not licensed to even receive commissions. So for SGH Wealth Management this is not just lip service, reducing our conflicts of interest and keeping our focus on our client’s best interest.

As highlighted in our FAQ section of the SGH Wealth Management website, Investment Advisors that hold the Series 6 or Series 7 license are 50% more likely to commit misconduct than their standalone broker counterparts. Since repeat offenders can retain their licenses and continue to sell investment products to the public, running a FINRA BrokerCheck should be the first step when interviewing a financial planner.

What is a BrokerCheck? Authorized by Congress, the Financial Industry Regulatory Authority (FINRA) introduced BrokerCheck to provide people with easy access to background information on brokers and advisors. Unfortunately, fewer than 1 in 10 investors are familiar with BrokerCheck, making them more susceptible to hiring a financial advisor with questionable credentials. Most importantly, BrokerCheck provides a disclosure section that contains information about any client disputes or disciplinary events.

Spread the word on this valuable resource to consumers and always make sure to complete a background check on every advisor and their firm before working with anyone. (Run a check on all of us too! We have nothing to hide)

https://brokercheck.finra.org/

See more on Sam Huszczo, CFA, CFP’s recent talk at the world’s largest ETF Investment Conference, Inside ETFs: