Frequent Questions

Who is protected by written communications?

You and the advisor are protected, but you benefit more from the protection. It is your money.

Why don't regulatory agencies protect me?

Regulatory agencies (SEC, FINRA) have no control over what advisors say to you. If there is a dispute it is your word against the advisor's.

What is the primary risk of verbal communications when I select an advisor?

There is a substantial risk you will select the advisor with the best personality and sales skills.

Why do weak advisors prefer verbal communications?

Verbal communication increases the impact of their personalities and sales skills.

Why would an advisor refuse to document communications?

Documentation forces advisors to tell the truth. You have a written record of their representations and sales claims.

What are the three primary benefits of written communications?

The information that is presented to you is more accurate. You reduce your risk of misinterpretation and misunderstandings. You have a written record if there is a future dispute.

What if my advisor refuses to document communications?

Terminate the relationship and find a higher quality advisor who will document communications. 

Who is responsible for documenting communications?

It is the advisor’s responsibility, but you have to require it. Advisors do not volunteer documentation that protects your interests and limits the impact of their sales pitches and claims.

Why do bad advisors prefer verbal communications?

The lower the quality of an advisor the more he relies on his personality and marketing skills to sell financial products.