By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | October 22, 2009 | Deceptive Sales Practices, How to Select Advisors

There is an easy way to protect you from unscrupulous financial advisors. All you have to do is require written documentation before you select them. Low quality advisors want you to make subjective decisions when you select financial professionals. Subjectivity plays into their hands because it maximizes the impact of their personalities, brand names, sales skills, and relationship skills.

Low quality advisors don’t like objective selection processes that require documentation. When you require upfront documentation, you force them to disclose their weaknesses. Plus, your increased objectivity reduces the impact of their personalities and sales skills.

Low quality advisors also want you to hire them based on verbal information (sales pitches). They prefer verbal information because you have no written record of what they said to win control of your assets. Verbal information benefits low quality advisors at your expense.

Your requirement for written documentation should include information about their experience, certifications, education, compliance record, criminal record, compensation, wealth management services, and how they will service their relationship with you.

Pay particular attention to their compensation method. If it is commission- only you are talking to a sales representative and not a financial advisor. Sales reps are licensed to sell you investment products. They are not licensed to provide financial advice for fees – the best type of advisor.

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