How is an advisors Conduct metric calculated?
BrightScope obtains customer dispute and termination data from an advisor’s SEC and FINRA disclosures. An advisor without any dispute or termination information would receive a full bar. The length of the conduct bar shortens with each dispute or termination. BrightScope takes into account the advisor’s years of experience in the industry. Additional years of experience will reduce the negative impact of a dispute or termination on an advisor’s conduct metric. Roughly 11% of advisors in our database have customer disputes and roughly 1% of advisors have terminations. The disputes and terminations shown do not necessarily represent all disputes, terminations or legal proceedings in which a firm or advisor may have been involved or the resolutions thereof. Without limiting the generality of the preceding statement, they do not include criminal or civil proceedings. Some complaints filed by investors against firms/advisors are frivolous and are resolved without payment by the firm/advisor
