Factors to Consider in Selecting Investment Opportunities

Topics: Financial adviser, Investment, Collective investment scheme Pages: 3 (782 words) Published: February 24, 2013
THINGS TO CONSIDER IN SELECTING AN INVESTMENT PROFESSIONAL Many investors prefer to select their own investments and chart their own financial courses. As has been shown by recent events, however, some potential investors lack the training, expertise or time to manage their own portfolios. As a consequence, many investors find themselves in need of financial assistance, but may need assistance in selecting an appropriate investment professional. The Securities Division suggests a consideration of the following factors in the selection of an investment professional. Registration First, you should ask whether your investment professional is registered with state or federal regulatory agencies. Generally, stock brokers must be registered with the state and investment advisers and their representatives who have assets under management of less than 25 million must also register with the state. State and federally registered investment professionals are also required to pass certain proficiency tests administered by the NASD or, in the case of investment adviser representatives, they must pass an examination or prove that they have been certified by professional groups requiring certain educational and/or proficiency levels. State registered broker-dealers and their agents are included in a database called the Central Registration Depository (CRD) which includes any disciplinary actions and complaints filed against them. Summaries of these actions are available to the public through the Delaware Securities Division. Registered broker-dealers, their agents and investment advisers and their representatives are subject to rules detailing honest and ethical conduct, which do not necessarily govern the behavior of unregistered persons. In certain circumstances, person selling securities without state registration and persons providing investment advice for a fee, without state registration, are doing so in violation of state law. If you have a question regarding whether the...
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