Client/ Advisor Relationships
Bridging the Gap
Who’s Looking Out For Your Money?
Client
You can choose to work with your DC Financial advisers through a fee based, commission, or subscription fee basis.
Financial Professional
Your DC Financial Adviser may act as an IAR (investment advisor representative) providing financial guidance to you and will generally be paid a fee for either managing assets and/or giving investment-related advice and is regulated through a registered investment advisor or RIA.
Other times your DC Financial adviser will take on the role of a registered representative. A registered representative is licensed to sell securities, provide financial guidance, and may be paid a commission when a product is purchased. A registered representative is regulated through a broker-dealer.
Investment Firm
An RIA processes the fee-based business of IARs licensed with the firm and holds certain responsibilities for regulatory compliance and adherence to securities laws.
A broker-dealer facilitates the buying and selling of securities on behalf of the registered representatives licensed with the firm. Broker-dealers hold certain responsibilities for compliance and adherence to securities laws.
Custody & Clearing Firms
Firms such as Pershing LLC and National Financial Services provide the trade execution, clearing, custody, and other services for securities and related transactions.
SEC
The Securities Exchange Commission (SEC) oversees the Financial Industry Regulatory Authority (FINRA), who then oversees broker-dealers, clearing firms, and your financial adviser. FINRA and the SEC require their members to comply with rules set to regulate the operation of the financial markets an the sales practices of various financial professionals. Regulators like FINRA and the SEC do not endorse any financial institutions.
Securities Investor Protection Act
Client assets are protected by the Securities Investor Protection Act, which is administered by the Securities Investor Protection Corporation (SIPC). The SIPC is a non-government and non-profit agency funded by broker-dealers. The main role of the SIPC is to return funds and securities to investors if the broker-dealer holding the assets becomes insolvent. The total limit of SIPC protection $500,000.