SEC Issues Investor Alert Regarding Misconduct of Financial Professionals

The SEC's Office of Investor Education and Advocacy issued an investor alert intended to help investors identify financial professionals who may have a history of misconduct.

The alert describes potential red flags for investors when working with financial professionals, including:

• disciplinary actions by a government regulator, such as the SEC or a state securities regulator, or by a self-regulatory organization, such as FINRA;
• a history of customer complaints;
• lawsuits or arbitration brought by customers; and
• employment with one or more firms that have been expelled from the securities industry.

Additionally, the alert links to various websites to use when checking the backgrounds of financial professionals, including FINRA's BrokerCheck Program, the Investment Adviser Public Disclosure Website and the NASAA database. Additionally, the alert recommends that, before becoming its customers, investors should take the time to look at the registration status and background of a firm or financial professional.

The SEC noted that it does not endorse financial professional titles and strongly encourages customers to "look beyond a financial professional's title when determining whether he or she can provide the type of financial services or products you need."

See: Investor Alert: Check out Your Financial Professional.