Investment is a tricky thing and almost everyone does the investment but not everyone earns the good fortune on these investments. Many investments fail very badly and cause the investor a significant loss. Therefore, considering the probability of the losses in the business, the people usually hire the investor advisor. Investor advisor could a single person or a company whose sole objective is to give you advise on your investment. His duty is to make sure that you invest in a such good business, which earn you a great fortune and does not cause you a loss. These individual however charges for their fee but its well worthy than loosing the entire investment for a wrong decision.
An act was passed in the year of 1940 which was the act of the investment advisor, this act introduced the term investment advisor to the market. However, the investment advisor is also referred as the financial planner in some case. The investment planner who have earn a certification or registration in their domain of work are called as RIA which stands for Registered Investment Advisor.
In most of the cases, the investment advisor works with the company which have clients to whom they provide the financial guidance. The investment advisor is usually responsible for all the financial transaction of their client and in many cases, they do not need to ask for the permission of their client before they could make any decision related to their finance. Although, some investment advisor usually attained a formal kind of discretionary which allows the investment advisor capable of making the financial decisions on the behalf of their client.
In order to attain the services of the investment advisor, you need to have certain portfolio. If your portfolio matches the requirement set by the investment advisor then you can hire it. however, the clients range of the investment advisor Canberra could be a from a private investor to the corporate investor.
There are certain laws and regularities that needs to be obeyed by every investment advisor. The investment advisor can not act as fraud and deceitful person and can not give such advise which is not legal or he can not make any kind of financial transaction that are not followed by a written permission. If he does so then he violates the law and is subjected to punishment. There could be other rules as well and these rules are completely dependent on the country and the state.