Advisor Check’s Revamped Background Screening Service Changes Hearts and Minds   

Following articles critical of Advisor Check’s background screening services for consumers, the company revamped and introduced 100% Free Background Checks over two months ago and consumers and advisors are raving about it.

November 12, 2009: ST. LOUIS, MO – AdvisorCheck, a free online service that provides consumers with thorough background checks on advisors in the financial industry, revamped its fee structure in September after some advisors voiced concern that the $50 screening fee was too costly.  Background checks have always been free to consumers but the company had previously required the advisor that was inquired upon to pay $50 for the screening. 

“We knew it really wasn’t an issue (the $50 fee) considering they could be receiving a new client but we thought why not take it off the table and create a situation where there is no reason for an advisor not to submit to a background screening,” said Advisor Check spokesman, Bryan Binkholder. By utilizing the service and creating high consumer demand, Advisor Check believes that advisors will see the value and join the ‘Pro Transparency & Disclosure Movement’ that the company has initiated. 

“I was approached by this company and from the beginning I thought it was a great idea. A way for me to let my clients and others know that I have a squeaky clean background after 16 years in this industry. I am proud of that,” commented Tony Filippone of Rockford, Illinois. 

Cindy R. of Houston, Texas was a consumer who requested a current background screening of a potential advisor via the Advisor Check system. “I was searching for a new advisor and had read many articles on how to check on financial advisors.  After a frustrating call to the state, they told me to request a FINRA report.  After I had read the FINRA report on my broker, I noticed it said the items were self-disclosed so I was concerned if the information I was receiving was accurate.  After he submitted to the screenings and they came back ok, it really gave me the confidence to move my accounts to him.”  

Advisor Check performs a twelve-point background check on advisors, since many consumers lack the time or resources to perform their own due diligence on a potential or current advisor.  The free service provided by Advisor Check offers a sense of security to consumers, while giving advisors a tool to promote their transparency and full disclosure.

About AdvisorCheck

AdvisorCheck, www.advisorbackgroundcheck.com, was established to provide consumers with unbiased information to promote honest practices by advisors in the financial services industry.  AdvisorCheck can help financial advisors by joining the ‘Pro Transparency & Disclosure Movement’ and utilizing this open book approach to establish trust and peace of mind with clients.  Through the Advisor Check website, both consumers and advisors can benefit through building accountability, instilling confidence, and developing mutually beneficial relationships. More information on AdvisorCheck is available at www.advisorbackgroundcheck.com.

A constant comment heard by AdvisorCheck when contacting brokers is that all the information they wish to release is posted on FINRA’s site.  The problem is, most consumers have little knowledge of how to attain this information and most brokers fail to make it available to the consumer right on the spot.  Better yet, how many consumers actually will ask a broker if they’ve had disciplinary problems.  The fact exist that many brokers are operating with ‘numerous’ issues and complaints on their FINRA reports yet consumers are left unaware.  Below is a great story of how one broker had over 100 pages of problems but people didn’t know because they don’t know where to look and it’s never ‘offered to them.’  Worse yet, most brokers and consumers are not aware that the current FINRA system is based on ‘Self Reporting’ so how many issues like bankruptcies, liens, judgments and criminal/civil issues are not being reported?

http://registeredrep.com/news/gross_nailed_for_7million0915/

Sep 15, 2009 1:53 PM, By John Churchill

You may not remember our April 2008 cover story on Gary Gross, the Boca Raton, Florida, (where else?) broker with a 100-page, customer-complaint laden CRD. Gross apparently preyed on elderly people and a FINRA arbitration panel recently awarded $7 million to his victims, whom he defrauded.

The plaintiffs’ attorneys are calling the award one of the biggest FINRA awards ever against an individual broker.

Gross, an Orthodox Jew, used his temple and his faith to earn the trust of prospective clients, one of whom was a Holocaust survivor. His Form U-4, at more than 100 pages long, listed 35 customer complaints (33 of them settled) amassed at several firms over the previous 8 years and illustrated the problems regulators face taking bad brokers out of the industry. Among the SEC’s complaint filed against him in 2008: churning, misrepresentation and “fabricating customer account values,” among others. Registered Rep. detailed the story of how Gross and others like him with horrendous records are sometimes able to slip through the cracks for long periods of time in our April 2008 cover story, The Failure Chain.

The award, handed down on September 4, included $4 million in punitive damages against Gross, 56, based upon what the panel found to be “willful and wanton” conduct in “flagrant disregard” of the investors rights, according to Scott Silver, an attorney with Blum & Silver, one of the firms representing investors. The 61-page award said Gross created false and misleading statements while engaging in churning, unauthorized trading, unauthorized use of margin and many more violations that cost several investors their life savings.

Has a consumer requested a background check on you?  This is great news!  Watch the video to learn about the process and how AdvisorCheck can help you!

Since the companies initial launch in early 2009, AdvisorCheck (www.advisorbackgroundcheck.com) has experienced incredible growth as advisors and consumers jump on the bandwagon of full disclosure and total transparency.  

http://www.forbes.com/feeds/businesswire/2009/07/29/businesswire127267313.html

While many in the financial services industry are ‘buzzing’ and ‘angry’ about background checks being requested by AdvisorCheck and advisorbackgroundcheck.com, the truth is that this is very common for many areas of our society.  In fact, teachers (a lot like investment professionals) are initially required to submit to background checks but then the system fails.  Many districts are now requiring yearly background checks and screenings.  As you will see, they are catching about 9% of the teachers with violations that occurred since they were hired by the district.

Maybe the advisors who are making the loudest noise are the one’s with problems?  We will see and compile the data as we go.

Check out this story

http://www.star-telegram.com/news/story/1545329.html

Consumers: We are here for YOU!  AdvisorCheck is dedicated to bringing trust and transparency back to the financial services industry.  Watch the video to learn the benefits of AdvisorCheck and how to use our services!

 Learn ways to utilize AdvisorCheck to help expand your business

Have you had a consumer inquire on your background?  Watch the video to see what the process entails.