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Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
Investigating Stockbrokers and Financial Advisers by Rob Wells
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Investigating Stockbrokers and Financial Advisers by Rob Wells

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Rob Wells, former Wall Street Journal/Dow Jones newswires deputy chief, presents "Investigating Stockbrokers and Financial Advisers," a free, one-hour webinar hosted by the Donald W. Reynolds National …

Rob Wells, former Wall Street Journal/Dow Jones newswires deputy chief, presents "Investigating Stockbrokers and Financial Advisers," a free, one-hour webinar hosted by the Donald W. Reynolds National Center for Business Journalism.

For more information about training for journalists, please visit http://businessjournalism.org.

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  1. Title Slide Inves&ga&ng   Stockbrokers  &   Financial  Advisers  
  2. Poll  Ques&on  #1   Have  you  researched  a  stock   broker’s  records?   • Yes   • No  
  3. •  Unsuitable   Investments     •  Churning     •  10b5     •  Breach  of  Fiduciary   Duty   Photo  by  Flickr  user  Victoria  Reay   Red  Flags  
  4. Research  Brokers,  Advisers FINRA  BrokerCheck     -­‐-­‐Records  on  637,000  current  and  former  professionals,  4,700  firms.       SEC’s  Investment  Adviser  Public  Disclosure  (IAPD)   -­‐-­‐25,000  professionals     Cer&fied  Financial  Planner  Board  of  Standards  Inc.   (CFP)   -­‐-­‐69,000  professionals    
  5. FINRA  BrokerCheck FINRA  (Financial  Industry  Regulatory   Authority):    Industry  group  that  licenses   and  polices  stock  brokers.     FINRA:  An  SRO.  Works  with  and  is   overseen  by  SecuriVes  and  Exchange   Commission  
  6. FINRA  BrokerCheck Quick  Ques&on:    Ever  heard  of  CRD?    Type  Y/N  or  the  defini&on     Data  derived  from  CRD:     Central  RegistraVon  Depository   Launched  1981    
  7. First  Screen
  8. Star&ng  Your  Search Having  a  CRD  number  speeds  your  search.   CRDs  available  on  complaints,  arbitraVon   records   Click  for  person  
  9. Get  Full  Name,  Middle  Ini&al,  Etc.   Get  Full  Name  of  Your  Broker.  Thousands   of  people  in  database,  may  take  Vme  to   find  right  person.  Filter  with  Zip  Code  
  10. Quick  Chat:  IdenVfy  the  RED  FLAG  in  this  filing.       Answer:  NOT  REGISTERED.  WHY?  
  11. Your  Turn   Time  for  some  repor&ng…  
  12. Search:  “Bernard  Madoff”   Go  to  a  separate  tab  on  web  browser  and   pull  up  this  link: h_p://www.finra.org/Investors/ToolsCalculators/BrokerCheck/   Photo  by  Flickr  user  Petezin  
  13. The  document  
  14. Which  secVon  has  the  juiciest  details?   •  Report  Summary   •  Broker  QualificaVons   •  RegistraVon  and  Employment   History   •  Disclosure  Events   Poll  Ques&on  #2  
  15. For  Firms:   • Overview  of  the  firm,  and  ownership   • History,  including  any  mergers  or  name  changes   • Summary  of  firm’s  operaVons,  list  of  fines,  regulatory  acVons,   arbitraVon  awards     For  Individuals:   • Broker  credenVals,  current  registraVons,  licenses  and  exams   • Employment  history  for  the  past  10  years   • Any  customer  disputes  or  regulatory  events  on  the  broker’s   record.   Key  Items  on  CRD  Reports  
  16. Employment  History  
  17. Details  of  Ac&on   Get  source  material   Details  of  Case  
  18. Quick  Chat  Ques&on   Type  a  word  or  phrase  into  the  chat  box:   Describe  other  ways  to  use   Broker  Check  as  a  repor&ng  tool.  
  19. Backgrounding   Source:  The  Washington  Post  
  20. Contact  Former  Co-­‐Workers:  Work  History  
  21. Double  Check  BrokerCheck:   Full-­‐Text  of  Arbitra&on  Filings:   hep://finraawardsonline.finra.org/search.aspx?   -­‐-­‐Material  linked  in  BrokerCheck  but  worth  searching.     Finra  Disciplinary  Ac&ons  Database  (FDA):   hep://disciplinaryacVons.finra.org/    -­‐-­‐Material  summarized  in  BrokerCheck,  access  to  raw   complaints  
  22. BrokerCheck  to  Cover  Poli&cs     Chat  Box  Ques&on:   Poli&cians  Who  Were  Brokers?  
  23. Your  Turn:  Search  “Jon  Corzine”  
  24. FINRA:  Not  Perfect!  
  25. Red  Flags   •  ArbitraVon  cases.  What   happened?       •  Employment  history.   RegistraVon  gaps;  where  were   they?     •  Brokers  can  peVVon  to  remove   arbitraVon  cases. Photo  by  Flickr  user  Victoria  Reay  
  26. Investment  Adviser  Public  Disclosure   hep://www.adviserinfo.sec.gov/IAPD/Content/IapdMain/iapd_SiteMap.aspx    
  27. What  Is  An  Investment  Adviser?   •  An  arbitrary  term  for  a  money  manager   •  Same  as  a  financial  adviser   •  A  unlicensed  Wall  Street  person   •  All  of  the  above   •  None  of  the  above   Poll  Ques&on  #3  
  28. Regulated  by  SEC  or  states     Dodd-­‐Frank  Act:  Boosts  states'  role  in  regulaVng  advisers     •  States  regulate  advisers  handling  between  $25  million  and  $100   million  of  assets  under  management.     •  SEC  oversees  handling  assets  of  $110  million     •  Both  can  be  found  in  Investment  Adviser  Public  Disclosure   database.   Investment  Advisers  
  29. Form  ADV   Main  Disclosure  Form  for  Investment  Advisers     • Part  1:  Summary  of  adviser's  business,  complaints   from  customers.       • Part  2:  Brochure  to  clients  ,  details  adviser’s   business  pracVces,  fees,  conflicts  of  interest,  and   disciplinary  informaVon
  30.  State  securi&es  regulators   North  American  Securi&es  Administrators   Associa&on     •  Always  worth  checking  with  state  regulators     •  Great  way  to  monitor  local  and  naVonal  trends  
  31. State  Enforcement   hep://www.nasaa.org/regulatory-­‐acVvity/enforcement-­‐legal-­‐acVvity/enforcement-­‐directory/    
  32. NYT  story   on  LPL   Financial  -­‐-­‐   Uses  state   regulators  as   sources   hep://nyV.ms/14PiIdR  
  33. Cer&fied  Financial  Planners   •  CFP  ®  designaVon   •  Must  pass  series  of  exams   •  Subject  to  oversight  of  CerVfied  Financial   Planners  Board   •  Investor  complaints  can  lead  to  CerVfied   Financial  Planner  revocaVon  
  34. CFP  Board  website  lists  revoked  planners  by  state  
  35. Search  for  a  Cer&fied  Financial  Planner   hep://www.cfp.net/uVlity/verify-­‐an-­‐individual-­‐s-­‐cfp-­‐cerVficaVon-­‐and-­‐background  
  36. Example  of  Disciplinary  Record  
  37. Chat  Box:  Number  of  CFP   RevocaVons  in  Maryland?     hep://www.cfp.net/about-­‐cfp-­‐board/ethics-­‐ enforcement/disciplined-­‐individuals-­‐by-­‐state     Your  Turn  
  38. Alphabet  Soup:     Financial  Professional  Titles   “The  requirements  for  obtaining  and   using  these  &tles  vary  widely,  from   rigorous  to  nothing  at  all.”    -­‐-­‐  SEC     hep://www.finra.org/Investors/ToolsCalculators/ProfessionalDesignaVons/ AccreditedDesignaVons/  
  39. Rob  Wells     University  of  Maryland,     Philip  Merrill  College  of   Journalism   robwells@umd.edu   Ques&ons?   Photo  by  Flickr  user  Xurble  

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