Operational Due Diligence

A client recently provided a CRD number and said that she was able to obtain a FINRA record on an individual. Yet our researcher was unable to obtain one. We searched the online Brokercheck, then contacted FINRA directly, then contacted the local regulatory agency at the state level. All of which stated that there was no person by that name or with that CRD number registered.

I discussed with the client and she said that she might have special persmission because her company is considering the person as a registered rep. Might give her more authority than a background checking firm can do?

The “Chartered Financial Analyst” program is administered by the CFA Institute. This organization is very particular about who can claim the title of “CFA” after their name.

See http://www.cfainstitute.org/

We do find a fund manager who claims to hold a CFA, but is not entitled to that title. Typically they have either not completed their studies, or have not kept their dues and credentials up to date.