Finding a great car is important—you know what you want, what you’re willing to pay, and you ask important questions before making an investment in a new vehicle. In each instance, exploration is needed as to whether the organization embraces bona fide fiduciary standards of conduct (as set forth in detail, below) to the delivery of all personalized financial and investment advice. See also Stephen J. Choi and A.C. Pritchard, Behavioral Economics and the SEC” (2003), at p.18. Practice management consultants train financial and investment advisors to take advantage of the behavioral biases of consumers.
Iv The U.S. Securities and Exchange Commission’s early comments regarding the necessity for imposition of fiduciary duties on those who provide investment advice upon learning the details of a client’s financial affairs should not go unnoticed: The record discloses that registrant’s clients have implicit trust and confidence in her. In other words, the investment adviser must at all times exercise good judgment, applying his or her education, skills, and expertise to the financial planning issue before the investment adviser.
Any truly knowledgeable individual investor would recognize the immense protections provided by the fiduciary standard of conduct, and would not permit the financial or investment adviser to contract out of fiduciary obligations. While industry representatives have argued that the 12b-1 fee compensation” received by the broker-dealer firm is not paid by the customer directly, there is no qualification in the definition of investment adviser which says that compensation must be directly paid by an investor. The scandals led so many to view Class B shares negatively that some financial services firms now limit the sales of the share class.
While admittedly Class C shares in particular, and fee-based compensation in general, might at times better align the interests of investors with those of financial intermediaries, such an alignment is not the basis of any exclusion from the application of the Advisers Act. Graduating students are hot favorites of cold-calls by recruiting managers from life insurance agencies and financial advisory firms.
We have a team of highly qualified and competent financial consultants who have the interest to understand our clients’ needs and are committed to help them succeed financially. Through IFCG, we believe our clients can be better served, and save time and money, if they bring all their financial services to one trusted provider that knows and understands them well, provides trusted guidance and advice, and can serve their full range of financial needs through a wide choice of products and services.