Monday, December 12, 2016

The Roles of Financial Professionals Defined

Former Chief Executive Officer and Chairman at The Rouse Company, Anthony W. Deering brings decades of financial services experience to his current role as a Director with Under Armour. Anthony W. Deering, who received his MBA from the Wharton School at the University of Pennsylvania, has successfully served the investment industry in a wide range of capacities.

There is no shortage of professionals willing to provide a variety of financial services. Understanding the roles of investment advisors, stockbrokers, and financial planners will allow you to find the right type to achieve your goals.

Investment advisors can be individuals or companies who offer clients educated and informed advice regarding a variety of investment products, such as stocks and mutual funds. Depending on the total value of assets under their management, investment advisors are required to be registered with either the SEC or a state regulator. 

A stockbroker, also referred to as a registered representative, is any person who engages in securities transactions on behalf of clients. Similarly, a broker-dealer buys and sells securities on behalf of customers (as a broker), for itself (as a dealer), or both. Stockbrokers are required to be registered, maintain FINRA membership, pass exams, and be associated with a broker-dealer institute.

Financial planners assist people and corporations in meeting their financial goals. They are expected to evaluate a client's current financial standing and then formulate a plan to meet specific objectives. Financial planners will typically have a specialty such as asset allocation, retirement, insurance, or estate planning. No specialized training or registration is required to call oneself a financial planner. However, the Certified Financial Planner Board of Standards does offer certification for candidates that successfully pass an exam.