GUEST BLOG: Are You Referring To High Integrity Financial Advisors?

We would like to welcome David A. Weintraub of Strockbroker Litigation as our guest blogger:

How well do you really know the Financial Advisors that you are referring to?  Well enough to know that you are not at risk for being sued for making a negligent referral?  If you are not really sure, you owe it to yourself and your clients to review the Financial Advisor’s CRD.  Obtaining a CRD is easy, and free.  After obtaining the broker’s CRD number from FINRA’s website, one can download a redacted version of the CRD. 

The redacted version of the CRD differs in several respects from an unredacted version.  First, the redacted version does not provide the name of the investors who have complained about the broker.  Second, the redacted version will not reflect bankruptcies that occurred more than ten years ago.  It will only reflect recent bankruptcies.  Third, the redacted version will not reflect whether the broker ever failed licensing exams.  The easiest way to obtain an unredacted CRD is through the Florida Office of Financial Regulation.  One can send an email to electronic_licensing@fldfs.com or Samantha.chambers@flofr.com .  In the email, request the broker’s entire CRD, including a full legacy report. 

If all this is too much trouble, I will be happy to obtain the CRD for you. For my article, Use Care When Referring Clients to Professionals, go to http://www.stockbrokerlitigation.com/wp-content/uploads/2013/05/DAW-Article.pdf .

David A. Weintraub, Securities Arbitration Lawyer, Strockbroker Litigation