Who Form 8815 Advisors 2022-2023

Instructions and Help about Who Form 8815 Advisors

We're going to talk a little bit about Form ADV today as you see States on their website before you have someone to be your investment advisor always ask for and read carefully both parts of the advisors Form ADV but what is it for maybe if you don't know the answer don't feel bad most investors even many investment professionals and not familiar with it form a TV is the form used by investment advisors to register with the SEC it describes all aspects of a firm's practice including its fee schedule conflicts of interest disciplinary information and a much more why is it important to read this form in the financial service industry a firm can have as many arrangements as it likes that result in conflicts of interest as long as they're legal and in compliance with applicable rules and if the firm does not adhere to the fiduciary standard they will not be obligated to put investors interest the first luckily however they are required to disclose all arrangements that result in conflicts of interest on the form adv let me give you another example say you're considering two advisors advisor a and advisor B advisor a coats you 1% to manage your assets while advisor B quotes you .5% does that mean advisor be charge alas not necessarily some financial advisory firms earn their revenue not from advisory services but mainly from sell of proprietary products commissions and kickbacks from product companies in other words they can charge you % to manage your assets but still potentially make a lot of money from you at the cost of your investment in return one big Wall Street firm disclosed on their adv filed in 2023 that on annual basis less than 1% of their revenue was...