August 30, 2010
The difference between a broker, dealer and investment adviser is clear to me. However, that has a lot to do with my educational background. I double majored in finance and accounting. For many people seeking financial services, they really do not know anything about investing. Hence, that is why they are reaching out to brokers and advisers. I feel that even when these people do reach out to a broker or adviser, they have no idea why that individual is recommending certain investments and not others. If an individual reaches out to a broker or dealer without knowing they have no fiduciary duty, that broker or dealer will take advantage of them. There is no doubt in my mind.
The finance system needs to be better explained to the common person. Please do your best to state to the public the differences between these professions. Then, everyone will come out better.