@Jack,
The Dodd-Frank Act and SEC rules increased the threshold above which all investment advisers must register with the SEC from $30 million to $110 million of assets under management. This means that state securities authorities will have primary regulatory authority over a substantial number of investment advisers that previously were subject to primary regulation by the SEC.
How do you feel about this? How does this benefit investors?
Re: RIAs and IARs
Dex
5/9/2012 9:24:02 AM
RIAs are one of those things I understand intellectually, but sometimes relegate to the area of "I don't have to think about this knowledge" -- when, obviously, I should be thinking about it!
What do the rest of you think? Are you clear about the distinctions between RIAs and IARs vs other financial professionals? If so, how did you get familiar with the terms?
Re: RIAs and IARs
yalanand
5/9/2012 2:14:41 AM
If investors have more protection when they use the services of RIAs and IARs than other types of financial representatives, why doesn't everyone search them out?
@Noreen, I think many investors are not aware of RIAs and IARs. I am not sure whose job it is to create such awarness ? I am sure IU is doing great service to all the investors by discussing such topics through blogs.
RE : Wall Street's Sales Culture Damages Investors
yalanand
5/9/2012 2:11:27 AM
Their only recourse is to leave.
@Jack, why cant these people who leave because of constant pressure take up the task of creating awarness among the investors rather than keeping quiet ? They have seen the in and out of sales tactics, and they should use that knowledge to create awarness.
Another great article Jack. When there is an industry generally beholden to butter their own bread rather than working for the customer, one has to ask: Aren't there alternatives? I believe there are:
-- The Jack Bogle "Vanguard model" -- pursuing market-based returns with low-fee funds and ETFs.
--Hedge funds: where players are incented to perform for the client and share the wealth (just watch out for the bad ones!)
--Roll-your-own electronic investing: There are an increasing number of automated Web services that will build portfolios for clients at low cost, using technology.
And of course there is always the Investor Uprising Index, which although young, has outperformed the major indices since inception!
I believe these are the models of the future.
Re: RIAs and IARs
Phoenix
5/8/2012 1:01:18 PM
Thank for the information. Your site seems like a good resource. Like you say it is sometimes difficult to figure out what to ask.
Re: RIAs and IARs
Watchdog
5/8/2012 12:48:48 PM
Hundreds of articles have been written about the "Top 10 Questions" you should ask financial advisors when you conduct your own research.
The questions are in important, but there is a missing ingredient that diminishes their value. Investors need a process they can use to ask advisors the same questions and compare their responses side-be-side. A website I founded, www.InvestorWatchdog.com, provides this process to investors for free.
We use a Request for Information to gather data from advisors. Then we upload their responses to an Advisor Scorecard report. This report displays advisor responses side-by-side and makes it easy to identify their relative strengths and weaknesses.
Watchdog's complete research process includes data gathering, report generation, and data storage. These free services empower investors to select advisors with the best qualifications, not the best sales pitches.
Re: RIAs and IARs
Phoenix
5/8/2012 11:43:00 AM
I think doing your own research is very important. However, much you may trust your financial advisor you have to make sure you get all the facts from different sources. Total reliance on one party is very dangerous. If you have an overall understanding with information gather from various sources you are unlikely to get conned by such advisors.
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
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