Many financial advisors may soon have to start calling themselves something else.
Some financial and wealth advisors will have to ditch the term “advisor” in their marketing, according to a federal rule that takes effect next month.
The rule, known as Regulation Best Interest, and issued by the SEC, aims to reduce investors’ confusion around professionals who help manage their personal finances.
Investor advocates, however, believe the action will be ineffective and further muddy the waters.
Broker vs. financial advisor
The issue concerns the difference between brokers and financial advisors.
Brokers conduct transactions such as stock trades for their