The main function of a financial advisor is to evaluate the economic performance of certain companies and industries for business firms and other organizations that have the money to make valuable investments.
Other tasks financial advisors have include:
" Compiling data for financial reports
" Analyzing social and economic data
" Examining market conditions
" Working with detailed financial records
" Creating statistical diagrams and charts
" Advising clients on financial matters
" Making investment presentations
Advisers use Form ADV to register as an investment adviser with the SEC. Form ADV also is used for state registration. Generally, an investment adviser that manages $25 million or more in client assets must register with the SEC. Advisers that manage less than $25 million must register with the state securities regulator where the adviser's principal place of business is located.
Form ADV has two parts. Part 1 contains information about the adviser's education, business and disciplinary history within the last ten years. Part 1 is filed electronically with the SEC. Part 2 includes information on an adviser's services, fees, and investment strategies. Currently, the SEC does not require advisers to file Part 2 electronically.
Wisconsin Agreement to Provide Financial Planning Advisory Services is a legally binding agreement entered into between a financial planning advisor and a client seeking professional financial guidance. This agreement outlines the terms and conditions under which the advisor will offer their expertise and services to assist the client in achieving their financial goals and objectives. The agreement covers various aspects, including the scope of the services, compensation and fees, responsibilities of both parties, confidentiality, termination clauses, and dispute resolution mechanisms. It ensures that both the advisor and the client are aware of their rights and obligations throughout the advisory relationship. In Wisconsin, there may be different types of agreements to provide financial planning advisory services, such as: 1. Comprehensive Financial Planning Agreement: This type of agreement caters to clients who require a comprehensive analysis and strategic planning for their entire financial situation. It encompasses various areas like retirement planning, investment management, tax and estate planning, risk management, and more. 2. Limited Financial Planning Agreement: This agreement focuses on providing guidance and advice on specific financial concerns or goals. It generally targets clients who seek assistance in a particular area, such as investment management, debt management, or budgeting. 3. Hourly/Consultation Agreement: This type of agreement is based on an hourly rate for financial consultations. It allows clients to seek advice on specific topics or concerns without committing to a long-term advisory relationship. 4. Fee-Only or Fee-Based Agreement: This agreement clarifies the compensation structure between the client and the financial planning advisor. Fee-only advisors charge a predetermined fee for their services, while fee-based advisors may receive compensation through commissions, fees, or both, potentially creating a conflict of interest. It is essential to carefully read and understand the specific terms and conditions of the Wisconsin Agreement to Provide Financial Planning Advisory Services before entering into any agreement. Individuals should consult a qualified legal or financial professional to ensure compliance with state-specific regulations and to tailor the agreement to their specific needs.
