Checking Out Brokers and Finding a Primer
The Investor Protection Trust survey points up the need for Americans to protect themselves against investment fraud and misconduct.
How do you check your broker’s credentials and disciplinary history? Where can you get basic information on investing? Here are a few resources:
* Disciplinary history for brokers: The National Assn. of Securities Dealers has a toll-free investor hotline ([800] 289-9999) consumers can call to get the disciplinary history of their brokers. However, be aware that these histories do not include civil litigation, arbitration settlements and awards or any pending actions.
In some instances, state securities regulators provide investors with more information. The North American Securities Administrators Assn. ([202] 737-0900) can provide phone numbers for the appropriate agency in your state. In California, state securities regulators can be reached at (916) 445-3062.
* Financial planners: The Certified Financial Planner Board of Standards has a similar toll-free hotline ([888] 237-6275) where investors can find out if their planner is certified and in good standing. Investors can also lodge complaints.
* Investing basics. A number of mutual fund companies have published free investing primers. Some of the better booklets are described as retirement planners. However, they describe many investment basics--from dollar cost averaging to reasonable expectations for different types of investments.
A few of the companies that will provide free copies to customers and noncustomers alike: Fidelity Investments ([800] 544-8888), T. Rowe Price ([800] 541-8460) and Dreyfus ([800] 782-6620).
