Investor education
Resources
Tools, articles, and regulatory resources to help you make informed financial decisions.
Regulatory & Compliance
Form ADV Part II
Our full disclosure document detailing our services, fees, and business practices as required by the SEC.
View Form ADVNASAA — Investor Education
The North American Securities Administrators Association provides investor education resources and information on fiduciary duty.
Visit NASAAFINRA — Investor Resources
The Financial Industry Regulatory Authority offers tools to research brokers, understand your rights, and protect yourself from fraud.
Visit FINRADOL — Meeting Fiduciary Responsibilities
The Department of Labor's guidance for plan sponsors on meeting their fiduciary responsibilities for 401(k) and pension plans.
View DOL ArticleInvestment Education
Understanding Asset Allocation
Learn how diversifying across asset classes can help manage risk and improve long-term returns in your portfolio.
Read ArticleWhat is a Fiduciary?
Understand the difference between a fiduciary advisor and a broker-dealer, and why it matters for your financial future. (see below)
The Case for Individual Securities
Why owning individual stocks and bonds in a Separately Managed Account can be more efficient than mutual funds or ETFs.
Rollover 401(k) Guide
A step-by-step overview of how to roll over your 401(k) to an IRA and what to consider when making this important decision.
Read ArticleUnderstanding the Difference
There are important differences between Independent Registered Investment Advisors (RIAs) and Registered Representatives (Stockbrokers).
Independent Registered Investment Advisor (RIA)
- Forza Investment Advisory is an RIA and is in the business of giving advice.
- Independent RIA firms are typically not owned by another and not beholden to any platform of products or services.
- Fiduciary: legally required to put clients' interests first (a higher standard than suitability).
- Typically fee-based or fee-only compensation for advice.
- Regulated by the SEC or states (as applicable) primarily under the Investment Advisers Act of 1940 and the rules adopted under that statute.
Registered Representative (Stockbroker)
- Brokerage firm primarily in the business of buying and selling securities.
- Registered Representative typically an employee/contractor of brokerage firm.
- Typically compensated by commissions on product transactions.
- Often experience greater profit from selling company's own brand of product.
- Held to suitability standards, not the higher fiduciary standards.
- Often "look like" an advisor in marketing and websites (read the fine print).
- Regulated primarily by NASD (but also by SEC and states).
SEC Required Disclosure
The SEC requires broker-dealers to add the following disclosure to your client agreement. Read this disclosure, and decide if this is the type of relationship you want to dictate your financial security:
"Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. We are paid both by you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits, and our salespersons' compensation, may vary by product and over time."
If this disclaimer appears in agreements you are signing, you should ask questions of your advisor. Obtain complete disclosure about how he or she is compensated, and where his or her loyalties lie. Then decide if the relationship is in your best interest.
Which Option is Right for You?
Questions you should ask yourself:
- 1What am I looking for — assistance with buying/selling securities, investment advice, or both?
- 2How do I want to pay my financial professional? Fees? Commissions?
- 3How important is it that my financial professional have a fiduciary responsibility to put my interests first?
Make sure you read the fine print! Read the disclosures on a brokerage firm's website and an RIA's site.
For more information, visit the Consumer Federation of AmericaForza Newsletter
Stay up to date with our latest market commentary, investment insights, and firm news.
View Latest Newsletter