Vital And Essential Facts That You Must Be Aware Of When It Comes To Investment Advisor
One very important thing about investment advisors or AI that we want you to know of is that it pertains to a firm or an individual that engage in a business of advising other firms or individuals to value the essence of prudence with regards to investing in financial securities, purchasing as well as selling. Talking about a certified Investment Advisor, they are those individuals who are registered under the regulatory agencies like the SEC or Securities and Exchange Commission, and they are paid in accordance with the percentage of assets they managed as well as the fixed fee for the number of hours they spend while working.
Another thing that you should be aware of when it comes to a registered investment advisor is the fact that they are responsible for providing investment advices to companies that are endorsed to them by the SEC. And also, we want you to know that it is of utmost importance for Registered IAs to be under investment companies that are offering both Mutual Fund services and Exchange-Trade Fund services. On the other hand, when we say unregistered Investment Advisors, we are referring to Investment Advisors that are not registered with any professional states agency. We are sure that many of you think that unregistered Investment Advisors are fake and bogus advisors but you are mistaken because they are still legit and legal, however, they only prioritize investment advice to private capital pools referred to as Hedge Equity Funds.
If there is one thing that we are sure about, that would be the fact that there is a rise in the number of individuals who would want to become investment advisors, most especially with how its popularity is escalating in first world countries and how its monthly compensation is given through commissions as well as fees.
One thing about fee-based compensations that we want you to know of is the fact that they allow investment advisors to rely on commissions guaranteed by full-service brokers or mutual fund managers. If we are to compare unregistered investment advisors with registered investment advisors when it comes to compensation, it is safe to assume that the latter receives more and they have more advantages in terms of producing investment plans and generating revenues as well. For those of you out there who are planning on becoming a registered Investment Advisor, here are the things that you have to take into account:
The very first thing that you have to do is to review and prepare for the series sixty-five examination since this exam is your gateway to practicing investment advisor hence, you really have to ensure you will pass it. If there is one thing that we want you to do so that you can prepare for the said exam, that would be to acquire a Series sixty-five Completion Form at any Financial Industrial Regulation offices in your locality.