How to Check a Financial Advisor’s Credentials
A wealth manager or financial advisor’s credentials are not just names and terms thrown around. They signify a lot more. They tell you about the advisor’s education, training, and professional expertise. Credentials help you understand whether the financial advisor is qualified, certified, and capable of handling your financial needs. They also provide reassurance that you are working with someone credible and accountable.
But how do you actually check a financial advisor’s credentials? Is it enough to simply ask them, or should you search online? Well, yes, these are one part of it, and then there are more things you can do. There are several other important checks you should make to ensure you are choosing the right professional.
This article can help you understand how to verify the credentials of a wealth management advisor and a regular financial advisor so that you can make an informed decision.
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But before we get to the how, let’s first understand the what. Here’s what you need to be looking for in a financial advisor:
- Certified Financial Planner (CFP)
- Chartered Financial Analyst (CFA)
- Chartered Financial Consultant (ChFC)
- Certified Investment Management Analyst (CIMA)
- Certified Private Wealth Advisor (CPWA)
- Accredited Investment Fiduciary (AIF)
- Certified Exit Planning Advisor (CEPA)
- Registered Investment Adviser (RIA)
- Chartered Retirement Planning Counselor (CRPC)
- Certified Public Accountant (CPA)
- Personal Financial Specialist (PFS)
- Certified Fund Specialist (CFS)
These are some of the most popular financial advisor certifications you should look for. But how do you check whether the professional you plan to hire actually holds these credentials? Let’s move to the next section to find out.
How can I check my financial advisor’s credentials?
Here’s how to check a financial advisor’s credentials:
1. You can check FINRA BrokerCheck
The Financial Industry Regulatory Authority (FINRA) maintains multiple public databases to help you check a financial advisor’s credentials. These include FINRA Arbitration Awards Online and FINRA Disciplinary Actions Online. But if you are just getting started, BrokerCheck is usually more than enough.
BrokerCheck is backed by FINRA and is designed specifically to help you research the background and qualifications of financial advisors and brokerage firms. It is a free tool. You can search using the advisor’s name, Central Registration Depository (CRD) or Securities and Exchange Commission (SEC) number, the firm they work with, or even by location. Since brokers and brokerage firms must be registered with FINRA, all of their details are stored on the tool. A BrokerCheck report is available for investment professionals who are currently registered with FINRA or a national securities exchange, as well as those who were registered within the last ten years.
A BrokerCheck report pulls information from the CRD, which is the securities industry’s official online registration and licensing database. Once you open a BrokerCheck report, you will see the advisor’s professional background. This includes where they are currently registered, where they have worked, and the licenses they hold. So, say you are using BrokerCheck to verify a professional’s CFP designation. You can do that here by checking their licenses. There is also a disclosure section, where you will find information on customer complaints or disciplinary actions, if any.
All you need to do is spend a couple of minutes on FINRA BrokerCheck, and you will have sufficient information about your advisor to decide whether to hire them.
2. You can use the Investor Adviser Public Disclosure (IAPD) website
Another reliable place to check a financial advisor’s credentials is the Investment Adviser Public Disclosure (IAPD) website. This platform is sponsored by the U.S. Securities and Exchange Commission (SEC), so you know the information comes from a credible and official source.
The IAPD website helps you figure out whether a financial advisor or their firm is appropriately licensed and regulated. It even pulls information from FINRA’s BrokerCheck. When you search on IAPD, you can see whether an investment professional or firm is registered with the SEC, with one or more state regulators, or with FINRA. You will also be able to know more about their professional background. This includes their past employment history, current registrations, and any disclosures related to disciplinary actions or regulatory issues. In short, you will have a clearer picture of the financial planner’s credentials.
Most of the information you see on IAPD comes directly from investment advisers and their firms, as well as from securities regulators. Investment advisers are required to file Form ADV when they register with the SEC or with state authorities. This form contains important details about the adviser’s business, fee structure, services offered, and potential conflicts of interest. On IAPD, you can easily search for an investment advisory firm and view the Form ADV it has filed.
As a general rule, the SEC regulates investment advisers who manage more than $100 million in assets. Advisers who manage smaller amounts are usually regulated at the state level. Either way, IAPD helps you see exactly who regulates your advisor and whether they meet the required standards.
3. You can look them up on the Internet
The Internet can actually be your best starting point. It is far more useful than people give it credit for. An online search can tell you a lot about a financial planner’s credentials, experience, and more.
Most investment firms today have detailed websites that list their financial advisors, including information on their qualifications, services offered, and fee structures. This gives you a basic sense of who you are hiring and whether their expertise aligns with what you are looking for. Even independent financial advisors usually have an online presence. They could have a personal website, LinkedIn profile, or even social media presence. These platforms can help you understand their background.
That said, you should ideally not stop at what is written on their website. You should always cross-check what you find online with official tools like FINRA BrokerCheck and the IAPD website. If someone claims certain licenses or registrations, these platforms will help you verify whether those claims actually hold up. Online reviews can also be helpful. While you should not give much weight to a single bad review, if there are a couple or more, you may consider them more seriously.
At the end of the day, remember that not everything that looks good on paper works in practice. The Internet helps you gather more than what is displayed on a verification tool. So, make sure you use them all together.
4. You can verify their fiduciary status
A fiduciary financial advisor is someone who is legally and ethically required to act in your best interest, not theirs. One easy way to determine whether the advisor you are hiring is a fiduciary is to check their professional designations. Certain credentials often indicate a fiduciary responsibility. Common ones include Certified Financial Planner (CFP®), Accredited Investment Fiduciary (AIF®), Registered Investment Advisor (RIA), Registered Investment Advisor (RIA), Certified Public Accountant/Personal Financial Specialist (CPA®/PFS®), and Chartered Financial Analyst (CFA®). A designation like any one of these can show you that the advisor has met specific ethical standards.
Next, you can check whether the financial advisor or their firm is registered with the SEC or state regulators. You can verify this through official databases, such as those mentioned above, including the IAPD website. You should also ask how the advisor is paid. Fiduciaries usually operate on a fee-only or fee-based model, so you pay them directly for their advice rather than them earning commissions from selling products.
And finally, you can just ask them whether they are a fiduciary. Yes, it is really that simple. That said, do not stop there. Even if an advisor confirms they are a fiduciary, it is still a good idea to verify it yourself using the steps outlined above.
5. You can browse through SEC Action Lookup – Individuals (SALI)
Another useful tool you should know about is SEC Action Lookup – Individuals (SALI). While this platform does not list a financial planner’s credentials or certifications, it focuses on another important factor – their regulatory history.
SALI allows you to search for individuals who have been named as defendants in SEC federal court cases or respondents in SEC administrative proceedings. It shows you whether a court has passed a judgment against an individual or whether the SEC has issued an official order involving them.
One important thing to keep in mind is the data’s time range. Your search results will include individuals charged in SEC actions filed between October 1, 1995, and January 31, 2025. The database is updated periodically, but for now, it does not include cases outside this window.
Even though SALI does not directly confirm whether someone is licensed or certified, it helps you answer an equally important question – Has this person had any serious disclosures in the past? This can provide peace of mind and is certainly something you should be looking for before you hire a financial advisor. When used alongside tools like BrokerCheck and IAPD, SALI can help you make an informed decision.
Now you know how to verify the credentials of a financial advisor. But what if you do not find anything at all? Here’s what you do next.
First, it is possible that the financial professional you are looking at is not registered with FINRA, the SEC, or state regulators. Most legitimate advisors will appear in at least one official database. So, if you cannot find one, something may not be right. However, before jumping to conclusions, make sure you are actually searching in the right place. Some advisors are registered as brokers, others as investment advisers, and some show up under their firm’s name rather than their own.
It is also a good idea to cross-check across multiple platforms. For example, if you do not find them on BrokerCheck, try the IAPD website, or vice versa. Using multiple sources will ensure you do not miss any important information.
Another common issue is incorrect search details. If you mistype, enter the wrong firm name, or enter an outdated registration number, you won’t find any results. Double-check everything you are entering into the search, including names, CRD numbers, firm details, and other relevant information. You can also reach out for direct assistance if you are stuck. For example, FINRA offers a BrokerCheck Hotline at (800) 289-9999, where you can ask for help finding or understanding an advisor’s record. You can call 240-386-4848 if you are facing issues on the IAPD website. Most official tools and regulatory websites offer similar options.
That said, if you have checked all the right tools, entered correct information, and still can’t find anything anywhere, it is reasonable to question the financial planner’s credentials. In such cases, it may be safer to look for someone else.
Protect yourself by verifying a financial advisor’s credentials
It is important for every investor to know how to check a financial advisor’s credentials. It is a critical step in understanding who you are working with, their background, and whether they are qualified to help you. The good news is that most of the tools you use to verify credentials can actually reveal much more than just an advisor’s certifications. They can show you their registration history, experience, and even any past disclosures.
It also helps to do a bit of common-sense research. Look up the advisor online, read reviews, and ask peers, friends, or colleagues who have worked with financial professionals for recommendations. And do not hesitate to ask the advisor directly about their qualifications, fiduciary status, and anything else you may want to know.
Finally, consider working with advisors sourced through credible platforms. Using a trusted service like our financial advisor directory can make the process easier by connecting you with vetted professionals who meet certain standards.
Frequently Asked Questions (FAQs) about financial planner credentials
1. How can you request a BrokerCheck report?
You can request a BrokerCheck report directly from FINRA in a few simple ways. The easiest option is to visit the BrokerCheck website on FINRA’s official platform. FINRA also allows requests via U.S. mail or fax. For written requests, you can reach them at:
FINRA BrokerCheck
P.O. Box 9495
Gaithersburg, MD 20898-9495
Fax: (240) 386-4750
If you prefer speaking to someone, you can call the BrokerCheck toll-free hotline at (800) 289-9999.
2. What if I face issues while looking up credentials?
If you run into trouble finding or understanding a financial planner’s credentials, you can reach out to the website you are on. FINRA operates a BrokerCheck Hotline at (800) 289-9999, where you can ask for assistance. If you are using the IAPD website and facing technical issues, you can call (240) 386-4848 for support. Most official regulatory websites offer similar helplines.
3. How do I know if an advisor is a fiduciary?
You can identify a fiduciary advisor by looking at their professional designations and registrations. Common credentials that often indicate fiduciary responsibility include Certified Financial Planner (CFP®), Registered Investment Advisor (RIA) or Registered Investment Adviser (RIA) firms, Accredited Investment Fiduciary (AIF®), Certified Public Accountant/Personal Financial Specialist (CPA®/PFS®), and Chartered Financial Analyst (CFA®).
You can also check whether the advisor or firm is registered with the SEC or state regulators, as RIAs are held to a fiduciary standard.
4. What else should I look for in a financial advisor?
Financial planner credentials are important, but so are disclosures. Disclosures help you understand if the advisor has had any disciplinary issues in the past. Additionally, make sure you understand how the financial advisor gets paid. And you must also consider how long the financial advisor has been practicing and the kinds of clients they usually work with.
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