Different Types of Firms
Do you need a full-service, discount, online, or specialty brokerage firm? Or an investment adviser?
Any business or individual that offers or sells securities (brokerage firm or broker) or who offers investment advice for compensation (investment adviser) to Kansas residents must register or file a notice with the Office of the Kansas Securities Commissioner (KSC). It's Kansas law, and there are few exemptions.
Federal laws divide oversight of investment advisers between the U.S. Securities & Exchange Commission (SEC) and state securities agencies based on the amount of assets under management. The SEC regulates investment adviser firms that manage investments of $100 million or more. The KSC regulates individual investment advisers and firms managing investments of less than $100 million (for all clients combined).
Before working with an investment professional, check with the KSC. The KSC website provides research resources to check the background of individuals and firms, including any disciplinary history and several other types of information. You can also call or send an email to staff at KSC with any questions or to request assistance in checking the background and credentials of investment professionals.
The KSC toll free number is 1-800-232-950 or visit www.ksc.ks.gov.
Interview several investment professionals before doing business with one. You should ask about:
Click here to learn more from FINRA about what you need to ask and know when selecting an investment professional.
*The information on this page is credited to IPT and Kiplinger. Their original materials are made available on the Kansas Securities Commissioner's website.