What is our goal?
There are many ways to judge the merits of a wealth manager—investment performance, industry reputation, assets under management. But in gauging our success we choose one measure above all others—the trust of our clients. We continually strive to earn our clients’ trust. We also conduct internal evaluations and solicit feedback to measure whether we are meeting that objective.
We will only act in your best interest.
You will always have access to your advisor.
When you speak, we will listen carefully.
When we speak, you can always expect objectivity and truth.
Another important difference between the Registered Investment Advisor model and the broker/dealer model is how success is measured. Registered Investment Advisors are typically privately held businesses that charge clients a fee calculated as a percentage of account balance. Growing the business means increasing assets under management by fostering positive investment returns, and by attracting new business, often by referral. As such, meeting the expectations of clients is the fundamental basis for the Registered Investment Advisor business model.
Broker/dealers tend to be sales-driven, product manufacturing businesses where success is defined by product profitability, share price (most investment banks are public) and shareholder profitability. In this model, there are obvious incentives to recommend products based on the commissions and other revenue they generate for the business rather than purely on risk, return and cost characteristics.
The Registered Investment Advisor model is employed by many independent, private investment advisers, as well as by private banks and trust companies, only some of which are public. Most Registered Investment Advisors remain private firms for private clients.
Making an informed choice: There is more than enough room in the investment world for both models of money management. But investors must fully understand the standard of care under which a prospective money manager operates. Expecting a broker/dealer to act in a fiduciary role is neither fair nor realistic. The selection of an adviser should be based on the type of advice sought and the kind of relationship desired.