Articles tagged with: financial advisor

Difference Between a Financial Advisor and a Registered Investment Advisor

In Cardiff, a survey by the Security and Exchange Commission found that most people are unaware of the differences between a registered investment advisor and a financial advisor. There are many key differences, so anyone putting their trust in these advisors must be aware of them.

The Financial Advisor

Financial advisors buy and sell securities for their clients. A financial advisor in Cardiff may help individuals set up retirement plans, 401(k), IRAs, and other types of pension programs for companies. They may also be able to offer stocks, mutual funds, or help with the distribution of wealth at the end of a person's life.

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Financial advisors are experts in finance, accounting, and market knowledge. The financial advisor also has other responsibilities.

1. Instructing clients on investment opportunities

2. Keeping up with the financial market

3. Assessing the risk in an investment

Registered Investment Advisor:

A registered investment advisor has many of the same job duties as a financial advisor. However, there is one key difference between the two, and this difference can mean a lot to potential clients who are seeking help with their financial investments. This is called fiduciary.

Investment advisors must be registered under the 1940 Investment Advisers Act. Some financial advisors might be just trying to make a commission by selling financial products, but registered advisors are held to a higher standard. A registered investment advisor (RIA), being fiduciary, is expected to put the best interests and the clients' interests above their own or those of any brokerage firm.