Choosing the right financial advisor is an important decision, and understanding the data about them can help you make a more informed choice. Here’s how to interpret the key sections of an advisor’s profile on AdvisorCheck:
Education & Certifications
A financial advisor’s education and certifications can indicate their level of expertise. Designations such as CFP
(Certified Financial Planner
), CFA (Chartered Financial Analyst), or CPA (Certified Public Accountant) demonstrate specialized knowledge in financial planning, investing, and tax strategies. Checking an advisor’s credentials helps ensure they have the necessary qualifications to meet your needs.
Want to learn more? Here’s our deeper dive on financial advisor certifications.
Disclosures – What They Mean
A disclosure on an advisor’s record indicates a past legal, regulatory, or disciplinary event. Not all disclosures are red flags, but they are worth reviewing. Some may be minor infractions, while others could point to more serious concerns. AdvisorCheck provides access to these records directly on our platform so you can assess any potential risks.
Claimed Profiles
AdvisorCheck features profiles for all US-registered financial advisors with data gathered from trusted public sources. Advisors can participate in the AdvisorCheck community by claiming their profile, which allows them to add information to their profile such as a short bio, their fee structure, etc.
When an advisor claims their profile, it also enables consumers like you to interact with them by asking a question or requesting a meeting through their AdvisorCheck profile.
We verify anyone who claims a profile is exactly who they say they are. That way you don’t have to worry about an advisor you're interacting with through AdvisorCheck being anyone other than that advisor.
Active vs Inactive Status (Previously Registered, Barred, and Suspended)
Some advisors on our platform may be listed as "previously registered," indicating their registration with FINRA or the SEC has lapsed or been terminated. In some cases, advisors may even be barred or suspended from the industry.
Though many previously registered advisors have retired or left the industry, some might continue practicing without proper licensing. If your advisor has an inactive status, this information empowers you to have an open and honest conversation about their situation and assess whether they remain the right fit for your financial needs.
Fee Structures & Fiduciary Responsibility
Advisors can be fee-only, commission-based, or a combination of both. Fee-only advisors are typically paid directly by their clients and do not earn commissions from selling financial products. Commission-based advisors may receive compensation from financial institutions for recommending certain investments. Fiduciary advisors are required to act in your best interest, while non-fiduciary advisors are only required to recommend products that are "suitable" for you. Understanding these distinctions can help you choose an advisor whose compensation model aligns with your needs.
Experience & Firm History
An advisor’s years in the industry, past firms they’ve worked with, and the number of clients they serve can offer insights into their expertise and what it’s like to work with them. A long track record may suggest reliability, while experience with multiple firms could indicate a broad range of knowledge—or a reason to investigate further.
By understanding these key details on an AdvisorCheck profile, you can confidently evaluate financial advisors and choose the right professional for your financial future.