Your client would like to open a brokerage account and has a neighbor who has been a broker at a large firm for 5 years. How can he check on the background of the broker?

Utilizing FINRA's BrokerCheck is the most effective way for your client to verify the background of the broker. BrokerCheck is a free tool provided by the Financial Industry Regulatory Authority (FINRA) that allows individuals to research the professional history, qualifications, and regulatory actions related to brokers and brokerage firms. This resource is specifically designed to enhance consumer protection by providing transparent access to essential information, such as employment history, disciplinary actions, and customer complaints.

In contrast, while asking mutual acquaintances might gather some informal insights, this method lacks the comprehensive and verified information that BrokerCheck can provide. Contacting the brokerage firm directly could lead to some useful information but may not deliver the same detailed level of background as the FINRA database, especially regarding any regulatory issues or complaints. Reviewing public court records could offer some context on legal matters but would still be limited and not focused solely on the broker's professional qualifications and reputation. Therefore, using BrokerCheck is the most reliable approach for your client to confirm the broker's credibility and history.