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July 13, 2005


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You're way off on the ADV. Only RIAs who manage funds on a discretionary basis file an AVD. Most financial advisors don't work this way and do not file an ADV.

Also, while most of the work I do is on a fee basis, sometimes commissions for transactions really is the most economical for buy and hold investors.

You're off base on getting references as well. No financial advisor in his right mind would give out his clients' contact information to anyone because 1) you must protect all your client's personal information and 2) it's just not an ethical thing to do.

JK --

You're wrong. Professionals regularly ask clients if they wouldn't mind being references. The clients agree and then prospective clients are then referred to them as needed.

I have been on both the asking and receiving end of this arrangement, so I know it exists.

Ok, it's a comment from THC in 2005 who says that you are "way off on the ADV". Sorry THC, he isn't. Any and all registered investment advisors are required to file a Form ADV with the State or the SEC. If you can make a commission, advisors can't by the way, then you are a registered representative/broker with a broker dealer. You may call yourself an advisor, but you are held accountable by FINRA and your Broker Dealer to represent the broker dealer, not the client. If what you SELL is suitable, then you are free from liability. Advisors are fiduciaries and held responsible for the appropriateness of their recommendations. They can offer something that is suitable, but still be liable if it is not appropriate. Even if you choose to be an Investment Advisory Representative of your firms RIA, you are still serving the client as a broker whenever you make a commission.

Oh, non discretionary advisors also have to file a Form ADV. If you are charging a fee for invesment advice or management, you have to file a FORM ADV.

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