If you receive a monitoring alert about your advisor’s licensing or registration change, it’s important to understand what it means and what you should do next to protect your interests.
Advisors must hold specific licenses and registrations to legally provide financial advice and sell certain products in each state. Changes to licensing can include:
Obtaining new licenses (expanding their capabilities)
Dropping licenses (narrowing their service offerings)
Changes in state registration (where they're authorized to do business)
License suspensions or revocations (serious regulatory issues)
Investment advisors managing less than $100 million typically register with state securities regulators, while those above certain thresholds register with the Securities and Exchange Commission (SEC). The type and status of their registration determines their regulatory oversight and the protections available to you.
A license suspension or revocation is a critical red flag. It means your advisor can no longer legally provide certain services and may have committed serious violations.
Review your alert carefully to see what license or registration changed and when.
Check your advisor’s profile, specifically the Registration and Exams tab, for a map and further explanation on registrations and licensing.
Ask your advisor how the change affects your accounts, services, or ongoing relationship.
If a license was suspended or revoked, your advisor may no longer be able to serve you; consider finding a properly registered advisor right away.
If you have questions or feel uncertain, reach out to us anytime at support@advisorcheck.com.
