Overview

Corporate scandals, investment scams, deceptive sales practices targeting seniors are all too common these days. The goods news: consumers are becoming savvier about their finances—and checking out their financial advisors more carefully before doing business. This process is called “due diligence.”

Due diligence has two parts. The first is making sure your advisor is properly licensed, hasn’t run afoul of regulatory authorities, and isn’t a felon. The second is asking questions about the person’s training, business practices, and compensation methods. Asking for referrals from current and prior clients is also a good idea.

National Ethics Bureau provides free resources that help you do your initial due diligence

• Ability to verify the background of an NEB approved advisor by contacting our national call center.
• Regulatory agencies list if you wish to contact government agencies yourself.
• Ability to purchase a background check on your insurance or financial advisor. Our Ethics Check System™ is the most comprehensive background and compliance check in the financial services industry.
• Ability to search for National Ethics Bureau approved advisors. These professionals have already passed the Ethics Check System™ and have agreed to uphold the National Ethics Bureau Ethics Pledge.
• Consumer resources, including our Scam Report news items and our series of Consumer Protection Guides.

Once an advisor passes your initial screen, be sure to ask further questions about the person’s training, business practices, and compensation methods. By doing a thorough job of due diligence, you will be more likely to:

• Find an advisor you can trust.
• Avoid costly financial mistakes.
• Sleep soundly at night.