- A professional title or designation is not a substitute for checking registration, background, firm, and disciplinary history.
- Brokerage and investment-advisory relationships can involve different services, compensation, and legal obligations; understand which relationship applies.
- Fees may be paid directly or indirectly and can include account, product, transaction, asset-based, subscription, or third-party costs.
- Put recommendations, costs, conflicts, custody, and communication expectations in writing before funding the relationship.
Rules, tax treatment, product terms, fees, market structure, and provider practices can change. Use this material as general context, then confirm current official documents and provider terms before acting.
Verify the person and the firm first
Use official regulatory search tools to confirm registration status and review background information for both the individual and the firm. Match the legal name in the database with the person and firm the investor is actually dealing with.
Understand what service is being offered
Ask whether the relationship is brokerage, investment advisory, financial planning, or a combination. Clarify whether the professional provides ongoing monitoring, discretionary management, one-time recommendations, or only transaction execution.
Map how compensation flows
Record every compensation path: commissions, asset-based advisory fees, subscription fees, product expenses, spreads, referral payments, cash-sweep economics, or other third-party compensation. Then ask what incentives those payments create.
Can the person and firm be verified in official databases?
What decisions will the professional make, recommend, or monitor?
What can the investor pay directly or indirectly?
Who holds the assets and what incentives could influence recommendations?
Read the relationship documents
Review Form CRS, Form ADV where relevant, brokerage or advisory agreements, fee schedules, privacy and custody information, and product disclosures. Keep copies of signed agreements and important recommendations.
Review the relationship like any other investment decision
At least periodically, compare the service delivered with the agreed scope, total costs, portfolio changes, communication quality, and unresolved conflicts. Re-verify registration and background if something material changes.