Compare Investment Advisers to Stockbrokers
| Issues |
Investment Adviser |
Stockbroker |
| Fiduciary Duty |
Required to act in client’s best interest |
Not required to put the client’s best interests first |
| Disclosure |
Must handout Firm Brochure |
Disclosures not required. Not required to inform clients of commissions or payment incentives from selling financial products |
| Conflict of Interest |
Cannot trade with clients as principal |
Frequently trades with clients as principal and may earn undisclosed profits |
| Code of Ethics |
Financial planning practices follow a strict Code of Ethics |
Financial plannning, if offered, is incidental to the sale of product |
