What Verdica's 823 score means for Financial Services Firm 56
Financial Services Firm 56's composite score of 823 out of 850 places it in the "excellent" band (800–850), indicating strong regulatory standing and low compliance risk. A score in this range reflects a firm with a clean or near-clean disciplinary record, current registration status, and sound operational indicators as measured by SEC and FINRA data.
For a business owner or consumer evaluating this provider, an 823 score signals that regulators have not flagged material violations, and the firm maintains the licensing and oversight standards expected in Pennsylvania's financial services market. This does not mean the firm is perfect—no entity scores 850—but it does mean that based on public regulatory records, the compliance risk profile is minimal. The score should be interpreted as a baseline indicator of regulatory health, not a guarantee of service quality or performance.
How the sub-scores break down
Registration & Compliance (850/850): This perfect sub-score indicates that Financial Services Firm 56 holds current, active registration(s) with the SEC and/or FINRA and has no unresolved compliance violations on file. In the financial services industry, this dimension tracks whether a firm maintains proper licensing, files required disclosures on time, and passes regulatory inspections without material findings. A score of 850 here means the firm is in full regulatory good standing.
Disciplinary History (850/850): This sub-score reflects the firm's record with regulators over time. FINRA and SEC disciplinary records include formal actions such as fines, suspensions, bars, and cease-and-desist orders. An 850 score indicates either no disciplinary history or only minor, fully resolved matters that did not result in significant regulatory action. Firms with multiple violations, larger fines, or recent enforcement actions score substantially lower in this dimension.
Business Profile (740/850): This sub-score evaluates operational risk indicators such as complaints-to-assets ratio, revenue stability, and structural compliance with business registration requirements. At 740, this score is strong but notably lower than the other two sub-scores. A 740 indicates acceptable operational health, though it may reflect factors such as complaint volume, market concentration, or business model characteristics that regulators monitor. This is not a red flag—it is in the "strong" band—but it is worth noting as the area with the most room for variation.
What regulators in PA track for financial services providers
The SEC and FINRA maintain public disciplinary databases that record enforcement actions against registered firms and individuals. These records document violations of securities laws, suitability rules, anti-fraud statutes, and operational requirements. Violations that trigger disciplinary action include unsuitable recommendations, failure to maintain required net capital, mishandling of customer funds, late or false regulatory filings, and violations of advertising or sales practice rules.
Business risk indicators track metrics such as customer complaint rates (complaints per dollar of assets under management or per transaction), firm age and tenure, changes in ownership or leadership, and compliance examination findings. Pennsylvania-regulated entities must maintain current Form ADV filings (for investment advisers) or Form BD filings (for brokers), pass regular compliance exams, and respond to customer inquiries through the FINRA complaint resolution process.
Scores move upward when firms maintain clean records over time and show stable operations. Scores move downward when disciplinary actions occur, complaint rates spike, or registration lapses or restrictions are imposed.
Bottom line
Financial Services Firm 56 presents a low compliance risk profile based on its 823 Verdica score and strong performance in registration, compliance, and disciplinary dimensions. Anyone considering engaging this firm should verify current registration status independently via FINRA BrokerCheck or the SEC's investment adviser search tool, review the independent customer ratings (4.6/5 average here), and confirm that the specific services offered align with their needs.