When your advanced monitoring report shows that a firm has regulatory disclosures, it means regulators or clients have reported certain events involving that firm or its professionals. This does not automatically mean the firm is bad or unsafe, but it is a signal you should take time to understand.
Disclosures give you a window into a firm’s past regulatory, legal, or customer issues, including complaints, arbitration cases, or actions taken by regulators. Some disclosures are minor or old, while others may point to more serious problems, repeated patterns, or weak supervision and controls. Reviewing firm level disclosures alongside individual advisor disclosures helps you judge whether you are comfortable with how the firm operates and manages risk.
1. Understand the Information
Read the complete details of the disclosure, not just the summary
Note who is involved (the firm, a branch, or specific advisors), the date, and what type of issue it is (for example: customer dispute, regulatory action, or termination after allegations).
Check whether it is a brand-new item or an update to a past disclosure.
Identify whether the disclosure is resolved and how
Pay extra attention to items involving regulators, large dollar amounts, or firm wide issues like supervision or sales practices.
In your AdvisorCheck dashboard, see how many and the types of disclosures the firm has so you can understand the volume and nature of issues.
Remember that larger, older firms may have more disclosures simply because of their size and history; focus on patterns and types of events rather than the raw count.
2. Assess How This Might Affect You
Consider the nature of the issue: is it a compliance lapse, supervisory failure, fraud/misappropriation, or an operational breakdown?
Consider the scope: is it limited to one advisor, or does it affect a larger part of the firm?
Consider the impact on your accounts: does it relate to the products you use, the business line your accounts are in, or the office that serves you, and could it affect the firm’s ability to act in your best interest?
Compare firm level disclosures with your advisor’s individual record to see whether concerns appear isolated or more widespread.
3. Questions to Ask Your Advisor or Your Firm’s Compliance Department
What triggered this new disclosure, and how has the firm responded?
Were client assets harmed, and if so, how were clients notified and made whole?
What changes has the firm made to prevent similar issues happening in the future (for ex. new controls, training, or supervision)?
Do these disclosure events affect the products, accounts, or strategies you’re using with me today?
4. When to Consider Taking Further Action
If disclosures are older, resolved, and well explained, you may decide to simply continue monitoring the firm over time.
If issues are recent, repeated, poorly explained, or clearly tied to your type of account, consider talking with another qualified advisor for a second opinion.
If you lose confidence in the firm’s culture or controls, start evaluating other firms while making sure any moves are made carefully, so your accounts remain protected and correctly transferred.
You can begin exploring other options while continuing to keep an eye on your accounts. Use our search tool to quickly find, compare, and continuously monitor new advisors and firms, giving you a clear picture of their background and track record before you make your decision. You can also learn what to expect when changing firms and how it could affect your finances here.
If you have questions or feel uncertain, reach out to us anytime at [email protected].
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