SEC Updates "Top Tips" for Selecting a Financial Professional

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.