HOW TO VERIFY THE BACKGROUND OF A
BROKER OR BROKERAGE FIRM

Investigating the background of your present or future securities salesperson and company is a crucial step before handing over your investment dollars-even if that individual or company was highly recommended to you.  Taking a little time to verify before you buy securities could save both money and future aggravation.  Here is the primary resource to help you:

Central Registration Depository (CRD)
The CRD system is a national computerized database that holds licensing and registration information on stockbrokers (also known as registered salesmen or registered representatives) and brokerage firms. 

In Arizona, any individual or company that offers or sells securities must be licensed or registered with the Commission's Securities Division.  This requirement also applies to individuals who may already have a license to sell insurance products.

The records contained in the CRD system can reveal a great deal about the financial professional or company's past, including:

• Employment history 
• Discipline history 
• Examination history
• Licensing or Registration status

These records are only accessible to certain securities-related agencies, including your state regulator, the Securities Division. 
 
How to Request a CRD Report

As an investor, you can request a CRD report from the Division by contacting the Investigator on Duty at 602-542-0662 (within Metro Phoenix) or toll free, 1-866-VERIFY-9 (within Arizona only).  Please note that a written report includes a nominal charge based upon the number of pages contained in the CRD history.   Verbal reports in person or on the telephone are provided at no charge. 

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