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RIA Advantages
As a Registered Investment Advisory, we bring many advantages to our relationships. In order to help compare and contrast the differences among the Registered Investment Advisor, the Broker Dealer and the Insurance Agent, we have drawn a comparison list below.
Registered Investment Advisor
- As the investment management company, we are able to create or use any process, product or solution to fullfill the client need.
- We can design our fee to best serve the client's requirements. Typically, we are compensated by % of assets under management or negotiated fee.
- The freedom to create and design investment solutions places us in a fiduciary role. As such, we are held to a higher standard. We must place the client’s interest before our own at all times!
- Registered Investment Advisor are regulated by the state finance division under $25 million and the SEC after $25 assets under management.
Broker Dealer & Insurance Agent
- Brokers represent the investment management companies and their products.
- Brokers are limited to the brokerage company’s products to fill investment objectives. They are confined.
- Brokers are compensated via class of share or transaction commissions.These are often higher than % of asset fees.
- Insurance agents are compensated via commission. They are product driven.
- Brokers & Insurance Agents are not fiduciaries. As long as they fullfill the request, they have fullfilled their obligation.
- Insurance Agents are regulated by state insurance commission.
- Brokers are regulated by SEC.
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