How Do You Choose the Adviser That's Right for You?
There are many investment credentials out there and sorting through them can be difficult. But the letters after an adviser's name are worth getting to know because they are an important indicator of how much training he or she actually received and what his or her legal duties to you are.
Fiduciary Duty and Government Regulations
Not all investment professionals are held to a fiduciary standard. A fiduciary standard or duty legally requires advisers to put a client's interests ahead of their own at all times and to fully disclose their qualifications, their services, possible conflicts of interest, and any possible record of disciplinary actions.
|
"What else should you consider? Ask questions about their experience and where they gained their expertise, the associations they belong to, as well as certification. Certified Financial Planner, Certified Investment Management Analyst, and Chartered Financial Analyst all have strong requirements, but the CFA is the strongest for investors."
Business Week
|
No matter their legal obligation, CFA charterholders have a fiduciary duty of loyalty, prudence, and care to their clients. In other words, their investment actions must be for the sole benefit of the client.
Types of Advisers
The different kinds of advisers include investment advisers who provide recommendations for investing in securities and typically manage investments for clients, brokers who buy and sell securities, and financial planners who generally develop and possibly implement comprehensive financial plans for individual clients.
You can find CFA charterholders in these roles and many others because their advanced skills, rigorous experience, and uncompromising ethics prepare them for a wide range of the most challenging investment careers.