INVESTOR ADVISORY: Financial Service Providers

WASHINGTON, D.C. (April 30, 2013) – In recognition of Financial Literacy Month, the North American Securities Administrators Association (NASAA) today reminded investors of the importance of understanding the distinctions between the various types of financial professionals.

“Whether you are just starting a retirement fund or need additional help with growing and managing your money, you may benefit from selecting an investment services professional. It pays to understand the differences between a broker-dealer agent, an investment adviser representative, and a financial planner. Each serves a distinct role in helping with your financial future,” said Heath Abshure, NASAA president and Arkansas Securities Commissioner.

To help investors understand these differences, NASAA has issued an investor advisory providing basic information on these types of financial services professionals and their obligations to investors.

For example, Abshure noted that anyone licensed as an investment advisor must, by law, act as a fiduciary and put the interests of his or her clients ahead of their own.

“With so many brokers and salesmen calling themselves ‘financial advisers,’ or ‘investment consultants,’ it is easy to see how investors might assume these individuals are licensed investment advisors,” Abshure said. “That’s one reason why NASAA continues to call on federal securities regulators to require all financial professionals providing investment advice to retail investors to be held to a high fiduciary standard.”

The investor advisory also provides questions to ask your financial professional and warning signs to watch for. The advisory is part of NASAA’s Informed Investor series.

For More Information:
Bob Webster | Director of Communications

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