21 August 2013

Broker versus Adviser

Investors are often not aware that their investment adviser is to all intents and purposes a salesman who earns a commission (often euphemistically called a 'bonus') that depends on the amount and type of 'investment products' he sells to the customer. Such an 'adviser' has to be seen as a broker. Investors are urged to ask any adviser how he is paid and if his firm gets any commission or other rewards from the fund managers or products he recommends.