Investment advisor


An investment advisor is a professional who uses his knowledge managing the investment portfolios of his clients in exchange for a monetary consideration.

Therefore, he is an expert in investment products where he can make profitable savings or excess liquidity of his clients. In this way, depending on their personal and risk profile, it advises them on which products are the most suitable for them. Among those who demand these services are individuals (individuals) and legal entities (companies).

Differences between investment and financial advisor

Actually, more than differences we can talk about the scope of the service. We could consider that:

  • A financial advisor is one who provides a service related to the finances of their clients. In this way, it advises you on your financial situation from an economic point of view, but also a fiscal one. Therefore, it helps you plan your financing needs and manage your tax payments.
  • The person who guides us on investments, focuses on this service. In other words, their job is to offer us products that adapt to our tastes, preferences and risk profiles. Therefore, we can say that its scope is investment.

It should be borne in mind that they are different professionals and their training as well. The first is specialized in financing and its training is in this aspect, the second is trained in investments. For example, large companies often have external financial advisers who report to their CFO. They can also have one of investments for excess liquidity.

Recommendations for choosing and charging for the service

Although each person is different, we can make a series of recommendations when choosing our advisor. More than anything, we are going to look at their training, experience and credentials.

  • At first, it may seem like a no-brainer, but specialized training is important. Normally the most common degree is in administration, but they can also be graduated in law. In both cases it is very common and advisable that they have a postgraduate degree related to the services they provide.
  • On the other hand, experience. They should have at least four or five years of work advising on investments. In these firms, as in law firms, there are recent graduates learning. Something that is usual and recommended and says a lot about their professionalism.
  • Lastly, the credentials. On the one hand, the laws of each country usually require them to register with a public regulatory body. On the other, and no less important, are personal and professional credentials. The Internet can help us in that, let's investigate, analyze and above all, ask what is necessary.

The service is usually charged in two ways. On the one hand, issuing an invoice for the total amount of the work carried out and on time. On the other, as a periodic commission on advice. The first is advisable when we need a specific orientation and in something specific. The other formula is recommended in long-term relationships.

Regulators in some countries

Finally, we are going to show who are the regulators that "monitor" these services in Spain and Mexico. Although they tend to be similar in other countries and are the same ones that control organized securities markets, such as the stock market:

  • In Spain it is the National Securities Market Commission (CNMV) that regulates the organized markets (stock market) of financial assets and liabilities in Spain. That is, the purchase and sale of stocks, bonds, bonds, and so on. It is an independent body from the Spanish tax agency.
  • In Mexico it would be the National Banking and Securities Commission (CNBV), a body similar to the previous one that regulates financial markets. It is also an independent body from the Mexican Ministry of Finance.

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