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FINRA & BrokerCheck
FINRA since 2007· Agency
Law or rule (2026)Set by statute, regulation or the agency; numbers change yearly.
FINRA is the industry's self-regulator for brokers; its free BrokerCheck site shows any broker's licenses, history and complaints.
See it on the Personal Finance & Estate map →How it works
FINRA, a private nonprofit overseen by the SEC, licenses and disciplines about 600,000 brokers at roughly 3,300 firms, writes their conduct rules, administers licensing exams and runs arbitration for customer disputes. BrokerCheck, at brokercheck.finra.org, shows each broker's licenses, past firms, customer complaints, settlements and sanctions, and links to SEC records for investment advisers. Red flags: several complaints, frequent firm changes, a bar, or a seller who doesn't appear at all.
Why it matters for you
A two-minute BrokerCheck search before handing over money is one of the easiest defenses against investment fraud and bad advice, for yourself or a parent.
Rules, limits and sources (2026)
FINRA's yearly statistics report firms, brokers, fines and arbitration cases; a 2019 study of BrokerCheck data by Egan, Matvos and Seru found about 7% of advisers had misconduct records.
Watch out for
Brokers can ask arbitrators to 'expunge' complaints from BrokerCheck; how often that hides real misconduct is debated, and FINRA tightened the process in 2023.
Connections (2)
▸FINRA & BrokerCheck is overseen by Securities and Exchange Commission (SEC)Law or rule (2026)
How they connect
FINRA is a self-regulatory organization: a private nonprofit, funded by the industry, that licenses and disciplines brokers and brokerage firms under SEC oversight. The SEC approves FINRA's rules, inspects FINRA itself and can review its disciplinary decisions, so BrokerCheck records sit inside a federal framework.
When it applies
FINRA formed in 2007 by merging the NASD, founded in 1939, with the New York Stock Exchange's member regulation.
The rule
The Maloney Act of 1938 authorized self-regulatory bodies under the SEC; SEC orders approve each FINRA rule change.
Watch out for
Critics argue industry self-regulation is too lenient and that mandatory arbitration keeps disputes out of court; defenders cite expertise and speed.
▸FINRA & BrokerCheck offer a free check when Choosing a fiduciary advisor (fee-only, CFP, CPA, attorney)Standard practice
How they connect
BrokerCheck shows a broker's or adviser's licenses, job history, customer complaints, arbitrations and disciplinary actions, free and in minutes. It is the basic background check before hiring anyone, like pulling a tenant's credit and court records before signing a lease.
When it applies
Online at brokercheck.finra.org, run by FINRA since 2007; it links to the SEC's database for registered investment advisers.
How sure?
A 2019 study by Egan, Matvos and Seru found about 7% of advisers had misconduct records, and many repeat offenders kept working, so checking pays.
Watch out for
Some complaints are expunged through arbitration, so a clean record is no guarantee; FINRA tightened its expungement rules in 2023.