Honest firms come to the wealth management industry to provide effective assistance to their clients. Still, some financial advisors earn money by promoting certain investment products. Only clarity in compensation structure can help attorneys understand in whose interests the financial advisor is working.
Nationally recognized wealth management company Certuity has been helping affluent clients effectively manage their assets for over 21 years. In early September, Managing Director of Certuity Mariia Eroshin, CFA, CPA, CFP®, MBA offered her vision of the importance of fee transparency for attorneys in the article “Fee Transparency is Key for Attorneys.” An interview with Mariia was published in the blog section of the company’s website. Ms. Eroshin has over 20 years of experience advising ultra-high-net-worth families. Therefore, her view on the compensation structure helps shed light on some aspects of the fee that often remain in the shadows.
On the Importance of the Source of Financial Advisors’ Fees
Every client who comes to a financial advisor assumes certain financial risks. The basis for cooperation is trust in the advisor’s expertise. But what if the financial advisor receives their remuneration not only for the consultation? They may receive a certain percentage from external companies for promoting their insurance or investment products. In this case, the attorney hopes for professional advice from an expert, but in reality, they get an ad from a promotional agent.
How to Find a Way Out of the Labyrinth of Fees
Attorneys understand the importance of legal regulations and obligations better than anyone else. Therefore, the secret to avoiding the trap of hidden fees and manipulation of clients is clear to them. The main tip is to find financial advisors who act as fiduciaries. They are obliged to adhere to all legal standards imposed on fiduciaries, the main of which is to act in the best interests of clients.
Certity is a Registered Investment Advisor (RIA), which is responsible for all wealth management advice and other services. Therefore, all fees charged by the company are transparent and can be easily explained to clients.
Indicators for Assessing the Trustworthiness of a Financial Advisor
- Registration with the Securities and Exchange Commission (SEC) or other authorizing bodies;
- Qualifications and experience of the advisor;
- Track records;
- Transparency of all fees.
Attorneys should not hesitate to make inquiries on all of these indicators. Moreover, they should check the Form ADV 2A of the advisor whose services they are going to use. It contains all the fees that will reveal how the advisor earns money.
Questions to Ask Financial Advisors About Fees
- Does a financial advisor act as a fiduciary?
- What are the sources of compensation for an advisor?
- Do they work for a fee or receive additional commissions for promoting a certain investment, insurance, and other products?
Answers to these and other questions will help attorneys see the real picture, not the one offered in advertisements.
About Certuity
Certuity is an experienced wealth management firm that provides comprehensive services to ultra-high-net-worth individuals, including:
- Family office services;
- Outsourced Chief Investment Officer (OCIO);
- Legacy Planning;
- Investment Advisory, etc.
Certuity has received numerous awards recognizing its achievements and professional service. The awards also recognize many of the company’s financial advisors, who are constantly working to improve their knowledge and find ideal financial solutions in the best interests of their clients.
Certuity Offices
| North Palm Beach | New York | Manhattan Beach | Miami |
|---|---|---|---|
| 1295 US Highway 1North Palm Beach, FL 33408(561) 693-3255 | 250 Park AvenueSuite 1437New York, NY 10177(917) 451-2010 | 820 Manhattan AvenueSuite 102Manhattan Beach, CA 90266(310) 698-8100 | 1111 Brickell AveFloor 12Miami, FL 33131(561) 486-0079 |
