Filing a complaint against a financial advisor can feel overwhelming, especially when your savings or retirement are involved. This guide explains how investors can report misconduct, where complaints are filed, and what to expect from the process. The information here is for educational purposes and does not replace legal advice.
When should you file a complaint?
Investors should consider filing a formal complaint when they suspect unauthorized trading, misrepresentation, excessive fees, unsuitable investment recommendations, churning, or failure to disclose conflicts of interest. Disputes involving brokerage accounts are typically handled through FINRA arbitration, while issues with registered investment advisers may be reported to the SEC or a state securities regulator.
Where to file a complaint
- FINRA: The Financial Industry Regulatory Authority handles most disputes involving brokers and brokerage firms in the United States. You can file an arbitration or mediation request at finra.org.
- SEC: The Securities and Exchange Commission accepts reports about investment advisers, hedge funds, and securities fraud. Submit a tip through the SEC Whistleblower and Tips portal.
- State securities regulators: Each state has a securities regulator that can investigate licensed professionals operating within its borders.
- Your firm: Many broker-dealers have an internal compliance or customer complaint process. Document every communication in writing.
What information should you gather first?
- Account statements showing the transactions in question
- Emails, texts, or written notes from your advisor
- A timeline of events with dates and dollar amounts
- The advisor’s CRD number from FINRA BrokerCheck
- Copies of the signed account agreements and disclosure documents
Common reasons investor complaints are filed
The most frequent allegations against financial advisors include unsuitable investment recommendations, high-pressure sales tactics, failure to diversify, excessive trading, and misrepresentation of risks. Our review of common complaint reasons breaks down each category with real-world examples.
What happens after you file?
After a complaint is submitted, the regulator or arbitration forum will acknowledge receipt and begin reviewing the allegations. Brokerage disputes often go to mandatory arbitration through FINRA, where an arbitration panel hears the case and issues an award. State and SEC investigations can take months or years and may result in fines, license suspension, or enforcement actions against the advisor or firm.
Frequently asked questions
Can I file a complaint online? Yes. FINRA, the SEC, and most state regulators offer online complaint portals. You can also report problems directly to your brokerage firm.
Is there a deadline to file? FINRA arbitration claims generally must be filed within six years of the event, but state laws and other regulators may have shorter deadlines. Contact a securities attorney if you are unsure about timing.
Do I need a lawyer? You are not required to hire a lawyer for FINRA arbitration, but many investors choose to because the process is formal and firms are typically represented by counsel. This site does not provide legal referrals.
Will filing a complaint recover my money? A complaint may lead to mediation, arbitration, or an enforcement action, but there is no guarantee of recovery. Outcomes depend on the facts, evidence, and forum.
Can I research my advisor before filing? Yes. Start with FINRA BrokerCheck and the SEC Investment Adviser Public Disclosure database. You can also search FinancialAdvisorComplaints.com for published reports on individual advisors and firms.
Need help reviewing an advisor?
Use the search bar on our homepage to look up a financial advisor by name, CRD number, or firm. Our reports summarize public disclosures, customer disputes, and regulatory actions so you can make a more informed decision.