How is an Investment Advisor Different From a Stockbroker?
At JSC Advisors we have a fiduciary duty to always act in the best interest of our clients. This is in direct contrast to stockbrokers who are generally not fiduciaries and therefore are not required to act solely in the best interest of their clients.
At JSC Advisors we will provide you with a Form ADV which will describe exactly how we do business and we will need your consent regarding any potential conflicts of interest that may exist. Stockbrokers and their firms are not required nor do they provide any comparable disclosures.
At JSC Advisors we will agree to a fee in advance for the services we provide and we will not earn any other profits from the relationship without your consent. Our fee is based on the assets we manager therefore we sit on the same side of the table as our clients. While stockbrokers are beginning to charge fees for the assets they manage the structure is usually tied to the amount invested in varying asset classes. The more invested in equities the higher the annual fee. This induces stockbrokers to keep their clients money in equities as opposed to fixed income or cash.
At JSC Advisors we do not operate an investment bank or underwriting division, therefore our attention is focused on managing your financial situation with your best interests in mind. Brokerage firm’s continually find other divisions effecting their retail business as well as their customers. An example involved the research department of a major brokerage firm recommending investments in high flying technology companies who happened to be investment banking clients despite the fact that internal memos described the companies as bad investments.