What You Need To Know About Financial Advice
In the financial world today, there are basically two types of advice available to investors: that given by stockbrokers and advice given by Registered Investment Advisors (RIAs).
The differences exist in the level of responsibility to the client. Historically, brokerage firms could offer investment advice only if that advice was “solely incidental” to the brokerage business, and only if they did not receive “special compensation” for the investment advice.
Unlike stockbrokers, RIAs have an obligation to act in an investor’s best interests in all aspects of the financial relationship. An advisor for an RIA is called an investment advisory representative (IARs). The advisors of Atlanta Wealth Consultants, LLC are IARs under the RIA of Cambridge Investment Research Advisory.
Atlanta Wealth Consultants, LLC are independent advisors who contract with Cambridge Investment Research Advisory (RIA) and Cambridge Investment Research, Inc. (Brokerage aka Broker/Dealer) for the outsourcing for a variety of functions including fee billing, compliance, performance reporting, licensing and auditing. We are proud of our relationship with Cambridge. Through the financial collapse of 2008, Cambridge has been exceptional and has been voted Independent Broker/Dealer of the Year three times by Investment Advisor magazine.
The main advantages of working with an independent advisory representative over a stockbroker are:
- Acting in the best interest of the client
- Disclosure of all conflicts of interest
These are significant advantages of RIAs vs. a stockbroker which is only required to have a reasonable basis for suitability for a customer.
Investment advisory business is the focus of Atlanta Wealth Consultants, LLC. Our focus is on low-cost, transparency and tax efficiency. Atlanta Wealth Consultants is listed as broker of record for commission accounts on behalf of long standing relationships. New business relationships are on our advisory platform where clients’ interests are best served. In conclusion, we believe there should be one set of regulations for the entire industry. The Financial Planning Association is one of the biggest advocates for clients’ protection and transparency.