How to Report Financial Planning Advice Without a License to FINRA

Are you concerned about someone providing financial planning advice without a proper license? Want to know how to report an unlicensed advisor to FINRA? This guide will walk you through the necessary steps and provide valuable insights into the process.

Gather Information

Taking action against unlicensed financial advisors is crucial for protecting yourself and others from potentially harmful advice. Before you start the reporting process, it's essential to gather comprehensive information. This includes:

The name and contact information of the individual or firm The nature of their activities Any evidence to support your claim, such as emails, advertisements, or recordings

Visit the FINRA Website

The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization responsible for regulating the securities industry. To report an unlicensed advisor, visit the FINRA official website.

Find the Complaint Section

Navigate to the “For Investors” section on the website, where you can find resources related to reporting misconduct. Look for a link to file a complaint or report a violation.

Submit a Complaint

Use the online complaint form provided by FINRA. You will need to fill out the necessary information, including the details you gathered during the information-gathering phase. Ensure you provide as much detail as possible to aid in their investigation.

Contact FINRA Directly

If you prefer to report the issue by phone or need assistance, you can contact FINRA’s Investor Complaint Center at 301-590-6500. They can offer guidance and support during the reporting process.

Follow Up

After submitting your report, keep a record of your submission and any reference number provided by FINRA. You may not receive immediate feedback, but your complaint will be reviewed. The process can take some time, so patience is key.

Considerations and Limitations

It's important to understand that FINRA has specific jurisdiction over registered individuals. If an unlicensed individual is performing services that require securities registration or other specific licensing, they should be reported to the appropriate entity. For example, selling shares of a business may be considered selling a security and would be reportable to the Securities and Exchange Commission (SEC).

Most financial advice does not typically require licensing. However, certain types of advice provided incidentally within a professional’s job duties, such as an attorney or CPA providing investment advice, can sometimes be regulated. In the case of Dave Ramsey, who openly states he is not a licensed or registered financial advisor, the services provided by such individuals do not violate regulations.

By following this guide, you can ensure that you are taking the appropriate steps to protect yourself and others from unlicensed financial planning advice. Stay informed, gather evidence, and use the resources available to you through FINRA to make a difference.