Do you really want biased advice? How can you get unbiased advice? Investors are rightfully confused about the role of different types of financial professionals. We don’t expect the various financial reform proposals to address this problem. The major financial institutions have torpedoed a universal fiduciary standard. They don’t want to provide unbiased advice, but they do want to continue to pretend to do so.
It’s pretty simple.
- A Registered Investment Advisor is always a fiduciary.
- A Stock Broker or Registered Representative is not and cannot be a fiduciary.
- A dual registered representative can change hats at a moment’s notice; you don’t actually see which hat he is wearing, so you can’t tell what he is at any particular time.
A stock broker or registered representative works for his employer (not you) and by law owes his loyalty to the employer (not you). His job is to sell the most profitable investments for his firm (not you). These folks can be recognized by the FINRA and SIPC labels on their cards and stationary.
Investor Solutions is a Federally Registered Investment Advisor. We are fiduciaries and always place the interests of our clients first. No quibbling here. We represent your interests exclusively.
Here’s our pledge to you:
1) We will always put the client’s best interest first — ahead of our own and that of our firm and its employees. As defined by federal law, we will act as a fiduciary in every transaction for you.
2) When selecting investments, we will act as the client’s agent, seeking the best investments at the best prices at all times.
3) While neither we nor anyone else can promise superior investment returns, we will provide impartial advice and act with skill, care, diligence and good judgment.
4) We will provide full and fair disclosure of all important facts, including our compensation, as well as all fees we pay to others on your behalf.
5) We accept no compensation including revenue sharing, commissions, allowances or other payments from the providers of the products and services we offer.
6) We will fully disclose and fairly manage, in the client’s favor, unavoidable conflicts.
These pledges will be signed and included as a portion of our contract with each client. If your advisor won’t sign a similar pledge, do you really want to be there?