SmartInMoney

 

 

 

For investors spooked by financial scams and scandals, the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) offer tools to monitor stockbrokers and identify and avoid fraud. They are helpful for investors who are afraid of getting into investing because of recent scandals and the economic meltdown.

At FINRA BrokerCheck, you can check the professional background of current and former Finra-registered securities firms and brokers, as well as find any regulatory complaints or customer disputes. You can also see a listing of the broker’s current registrations, licenses or exams passed.

At Investment Adviser Public Disclosure, the Securities and Exchange Commission (SEC) offers a similar check for information about investment-adviser firms.

Finra also offers Risk Meter and Scam Meter tools, which walk you through a series of questions aimed at identifying vulnerable individuals and investments.

For instance, the Risk Meter asks you if you have checked with a securities regulator to see whether an investment professional is licensed. Based on the responses, the tool offers suggestions on how to combat fraud.

Likewise, the site’s Scam Meter allows you to check if an investment is too good to be true, asking questions such as: How did you learn about the investment opportunity, and what have you been told about it? From your answers, the site offers warnings and ­advice.

 

 

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