How to Read FINRA BrokerCheck Reports — Complete Guide

FINRA BrokerCheck reports contain a wealth of information about brokers and broker-dealer firms. Here's how to interpret each section.

What Is a BrokerCheck Report?

BrokerCheck reports are public disclosure documents that FINRA maintains for all registered brokers and broker-dealer firms. Brokers are legally required to disclose certain events to FINRA via Form U4 (for individuals) and Form BD (for firms). This information is then made publicly available through BrokerCheck.

Individual Broker Reports: Key Sections

1. Summary Section

Shows the broker's current registration status, years in the industry, and a high-level count of disclosures. This is your quick-glance indicator.

2. Disclosure Events

This is the most important section. Disclosures fall into several categories:

3. Registration and License History

Shows all firms where the broker has been registered, when, and for how long. A pattern of short stays at many firms ("cockroach brokers") can be a warning sign.

4. Exam History

Lists passed exams and licenses. Series 7 (general securities), Series 65/66 (investment adviser), and Series 63 (state law) are common.

Firm Reports: What to Look For

Firm-level BrokerCheck reports show aggregate data about the entire firm, not individual brokers. Key items:

Understanding Disclosure Severity

Not all disclosures are equal. Context matters:

How PlainAdvisorCheck Grades Firms

PlainAdvisorCheck's A-F grades are based on a simple disclosure rate calculation: total disclosures divided by registered advisor count. This gives a normalized view that accounts for firm size. A large firm with 1,000 advisors and 10 disclosures (1% rate) is generally healthier than a small firm with 5 advisors and 5 disclosures (100% rate).

Grades:

Always verify at FINRA BrokerCheck for the full, current record.

Disclaimer: This guide is for educational purposes only. Not investment advice. Data accuracy depends on FINRA reporting requirements. Always verify with FINRA directly.

Frequently asked questions

Where does this data come from?

All figures on this page derive from official federal data — primarily the U.S. Bureau of Labor Statistics, U.S. Census Bureau, U.S. Department of Health and Human Services, and U.S. Department of Labor. We cite the underlying agency and series in the methodology section. No proprietary aggregators are used.

How often are figures updated?

Each series follows its own publication cadence. We refresh our database within 30 days of each upstream release. Specific update timestamps appear in the page footer where available; the methodology page documents the cadence per data series.

Can I use this data for my own analysis?

Yes. The underlying federal data is public domain. Our presentation, calculations, and editorial commentary are licensed for individual reference. For commercial republication or large-scale data extraction, contact us at the email listed on the contact page.

What if the figures here disagree with another source?

Different sources use different methodologies, definitions, geographic boundaries, and reference periods — disagreement is normal and informative. Our methodology page documents exactly which series and reference period we use for each metric, so you can reproduce or audit the figures against the upstream agency directly.

Calculator Plug your numbers in Methodology How we computed this Research Original analysis By state Drill into your jurisdiction

Worked example: parsing a real disclosure record

A typical FINRA BrokerCheck disclosure entry has six fields: disclosure type, status, initiated date, settled/resolved date, allegation summary, and resolution. Consider this synthetic-but-typical entry: "Customer Dispute — Settled — initiated 2018-04-12 — settled 2019-08-30 — alleges unsuitable recommendation in variable annuity — settled for $32,500 without admission." Three reading rules apply. First, "Settled" without admission is the most common outcome and does not establish guilt. Second, the gap between initiation and settlement (16 months here) often correlates with case complexity rather than fault. Third, an allegation tied to variable annuities or non-traded REITs deserves particular attention — the SEC has flagged these as high-complaint product categories for over a decade.

Field-by-field reference table

BrokerCheck fieldWhat it meansRed-flag threshold
Customer DisputesInvestor-initiated complaints2+ in last 5 years
Regulatory EventsSEC/FINRA/state actionsAny
Employment Separations After AllegationsU5 termination tied to allegationAny
Civil EventsCourt judgments or settlementsAwards above $25,000
Criminal DisclosuresFelony/misdemeanor chargesAny non-traffic
Financial DisclosuresBankruptcies, liensWithin 10 years
Bond DisclosuresSurety bond denialsAny

Cross-referencing with state regulators

BrokerCheck only captures FINRA-registered broker-dealers and their representatives. If your advisor is purely an investment adviser, you must also check SEC IAPD at adviserinfo.sec.gov. Smaller advisers (under $100 million AUM) are typically registered with their state securities division rather than the SEC. The NASAA member directory at nasaa.org links to all 50 state regulators — and state-level records sometimes include disclosures that federal databases lack, particularly for advisers who moved between firms across state lines. Confirming coverage across both federal and state systems takes roughly $0 in fees and 15 minutes of time, but uncovers an estimated 12% additional regulatory history that federal-only searches miss.