Below are a few steps that can be a starting point in verifying the legitimacy and credentials of a financial advisor:

  • Check their credentials 

  • Look them up on the SEC's Investment Adviser Public Disclosure (IAPD) website

    • This IAPD site allows you to view an advisor's Form ADV, which provides information on their qualifications, business practices and any disciplinary history

  • Check with the Financial Industry Regulatory Authority (FINRA) 

    • This organization maintains a database of registered investment advisors and can provide information on an advisor's employment and disciplinary history.

  • Get referrals 

    • Ask friends & family, work colleagues or other professionals (i.e., your accountant, lawyer, etc.) in your network for recommendations
    • Ask them questions about why someone may or may not be a good advisor
    • This simple step can be very valuable from a diligence perspective, as it's based on a real customer and client experience

  • Check for any complaints or legal actions

  • Verify an insurance agent's license 

    • These types of advisors sell insurance products, such as life insurance and annuities
    • You can ask for their insurance agent license, which is given by the state
    • Insurance is regulated at the state level in the U.S.

It is important to remember that even legitimate financial advisors may not be the right fit for a specific financial need - different advisors often have deeper domain expertise in certain areas than others (i.e., tax planning vs. estate planning, certain types of investments & investment strategies and so on). It is important to conduct research and ask questions before working with a financial advisor.


This is a high-level summary. Please refer to FINRA:“Choosing an Investment Professional” for a more comprehensive explanation.