One of the things I like about writing this blog is that I learn a lot from the readers. I’m proud to say that many of the visitors here are quite sharp. To that end I’m calling on some help from you.
I’m Creating a Form to Help Investors Rate Advisors
A few months ago I committed to myself that I would create a KYA form (Know Your Advisor form) which would be analogous to the KYC form that most advisors have to fill out (Know Your Client). In a nutshell, the KYC for advisors was supposed to ensure that client portfolios and transactions were in line with their risk tolerances and individual situations. Instead it has become the first line of defence for advisors dealing with disgruntled investors. If you signed off on the KYC, then you shouldn’t be surprised with adverse performance in your portfolio… and this is what a firm will come back to you with. I’m told that the original intention of the KYC was to protect investors, but I can assure you that from all the training I received as an advisor the KYC was positioned as a tool to protect the advisor, not the investors.
KYA (Know Your Advisor)
So I decided to create a KYA form (Know Your Advisor). This would be a form that is designed for the investor so that they may better qualify an advisor before deciding to use their services. There are so many licensing bodies and compensation formats for financial advisors in the industry that an investor would have no clue how to rate an advisor. If you could, you probably wouldn’t need an advisor in the first place. It’s a bit of a catch-22. So I decided that it’s time that all changed.
This Is Where I Need Your Help
While I know all the registration requirements, differences in designations, and some basic questions to have answered (i.e. compensation structures, do they know how options work, references, etc.), I want to make the form as complete as possible the first time around. So I’ll contribute my industry expertise, but I want to hear from you to make sure I don’t miss anything.
I’d like for anyone who is interested to offer up a list of categories or questions or general areas that need to be addressed when trying to rate an advisor.
If you only have one suggestion, that’s great. If you have 20 suggestions, that’s great too. The more the merrier. And please don’t feel shy to offer up your suggestions. If you aren’t sure it is applicable, trust me to be the judge of that and submit your suggestions anyways. It would be a great help.
On a much lighter note, there is a great viral video that was released quite a while ago but is making the rounds again because it’s just so good. I won’t spoil the surprise, but just click here and be patient because it takes a while to buffer the video. It’s totally worth it though, and is completely work safe.