WHAT IS INDEPENDENT FINANCIAL ADVICE?
The Independent Financial Advisor works for the client instead of being part of a financial institution, providing investment advice in matters objectively, and providing a more tailored customer experience. In the United States the activity is regulated by the states and the Securities Exchange Commission. The Financial Advisor has a fiduciary responsibility, which is being forced to act on what is the best decision in the interest of the client.
Main Functions of the Independent Financial Advisor:
1.
Develop personalized investment policies according to specific customer needs. Once executed, constantly perform risk control strategies.
3.
Work to achieve reduced transactional costs with financial institutions to negotiate with different entities.
5.
Analyze in an objective point of view investment ideas belonging to different financial institutions and selecting the best investment vehicles putting in competition different financial institutions from the marketplace.
2.
Select the best financial institutions for the custody of securities based on solvency, platform use, etc., to have an adequate diversification of risks.
4.
Consolidate macroeconomic, sector and company specific analysis of various financial institutions as well as entities that perform independent economic studies (another industry trend given the conflict of interest between the investment bank and bank depositors).
6.
Centralize communication with banks, receiving statements of all the banks (as the customer) and generate reports that calculate return, costs, and evolution of the portfolio (usually have limited power, or can execute purchase orders and sale but don’t have the capability without a signature for withdrawals or transfers).