Is It Worth Your Time to Research Your Adviser?

You can find out the disciplinary history of the investment firm or the individual who handles your money, but it can take some time to work through the details.

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

• Merrill website
  • https://www.merrill.com/
  • Related column excerpt:
    • “Let’s use a large, well-known firm as an example. Go to the Merrill Lynch website. Near the bottom of the landing page you will see a link for “Form CRS & Other Resources.” That link will take you to a page that has several links, including one for ‘Client Relationship Summary.’”

• Investor.gov, a website of the U.S. Securities and Exchange Commission
  • https://www.investor.gov/CRS
  • Related column excerpts:
    • “Once you open the CRS, look for the "disciplinary history" section. In the case of Merrill's four-page CRS (dated March 22, 2024), on the fourth page, highlighted in dark blue, you'll see this question: "Do you or your financial professionals have legal or disciplinary history?" If the answer is "yes," the CRS states: "Please visit Investor.gov for a free and simple tool to search for us and our financial professionals." Investor.gov is a website maintained by the SEC.”
• Merrill Lynch Investment Adviser Public Disclosure
  • https://adviserinfo.sec.gov/firm/summary/7691
  • Related column excerpt:
    • “Click on the profile in the dropdown menu, where you will find two ‘Get Details’ links. Since Merrill is a dual registrant, you’ll see ‘Investment Adviser Firm,’ which opens Merrill’s Investment Adviser Public Disclosure (IAPD) profile, as well as ‘Brokerage Firm,’ which directs you to Merrill’s BrokerCheck profile.”
• Merrill Lynch BrokerCheck profile
  • https://brokercheck.finra.org/firm/summary/7691    
  • Related column excerpts:
    • “Click on the profile in the dropdown menu, where you will find two ‘Get Details’ links. Since Merrill is a dual registrant, you’ll see ‘Investment Adviser Firm,’ which opens Merrill’s Investment Adviser Public Disclosure (IAPD) profile, as well as ‘Brokerage Firm,’ which directs you to Merrill’s BrokerCheck profile.”

• Merrill Lynch Best Interest Disclosure Statement
  • https://olui2.fs.ml.com/publish/content/application/pdf/gwmol/regulation-best-interest-disclosure-statement_rbidisc.pdf
  • Related column excerpts:
    • “Going back to Merrill’s CRS, you’ll see an ‘Additional Information’ section after the disciplinary history. It offers a copy of their Best Interest Disclosure Statement, which ‘provides information about the scope and terms of the brokerage services’ Merrill offers, describing ‘approach, services, fees, compensation and conflicts of interest.’”