financial consultant

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Who is the financial advisor?


The financial advisor provides financial advice or guidance to clients for compensation, and financial advisors or advisors can provide many different services, such as investment management, income tax preparation and real estate planning. They must hold the Series 65 license to conduct business with the public as a wide range of licenses are available for services provided by the financial advisor.

Interpretation of the financial advisor


Financial advisor is a general term with no precise financial definition. Many different types of financial professionals fall under this general category, including stock brokers, insurance agents, tax makers, investment managers, and financial planners. Real estate and bankers may also fall under this group.

Various examples of financial advisors


The product sales representative, such as a broker or a life insurance agent, may succeed as a financial advisor in some cases. Moreover, the real financial advisor must be well-educated, qualified, and experienced and also work as a financial expert on behalf of his clients rather than serving the interests of a financial institution Generally, a financial advisor is an independent practitioner who works in his credit capacity that comes with the customer’s interests before his interests.

Only registered investment advisers (RIAs) are kept in the true credit standards governed by the Investment Advisors Act 1940. Some agents and brokers attempt to exercise this trait, however, their compensation structure obligates them to contracts of the companies in which they work.

Credit discrimination


There are two types of relationships between financial intermediaries and their clients since the Investment Adviser Law of 1940. These relationships are between “two independent parties” and distinguish between transactions between registered representatives and clients in the field of brokerage, and the credit relationship requires consultants registered with the Securities and Exchange Commission (SEC) As registered investment advisors to exercise loyalty, sponsorship and full disclosure obligations in their interactions with clients.

Whereas the former is based on the principle of “purchasing at the buyer’s responsibility” guided by the rules of self-government in terms of “appropriateness” and “reasonableness” when recommending an investment or strategic product, the latter is based on federal laws that impose the highest ethical standards.

In essence, the credit relationship depends on the necessity that the financial advisor work on behalf of the client in a way that causes the client to work on his own if he has the knowledge and skills necessary to do so.

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