Behind the Curtain
We operate in a highly regulated profession with rules that were put into place for the right reason - to protect investors. It occurred to me that it’s often not properly shared how and why Financial Advisors do certain things, to live up to the requirements, and actually embrace the regulations for their stated intention. I’ve thought about writing this for quite some time; my way of providing you a peak behind the curtain – so to speak. Any opinions or representations I write are my own and I’ve made every attempt to be accurate. This is the first of a few brief articles. If you have questions or thoughts, please reach out to me personally!
Part 1
Our firm, BCGM Wealth Management, LLC d.b.a. Gettings Reed Financial, is a Registered Investment Adviser (RIA). Our registration became official on January 2, 2020. My colleagues and I are Investment Adviser Representatives of the firm, registered with the Securities and Exchange Commission (SEC). We are fiduciaries, we must put your interest ahead of our firm’s and our own. Placing your interests first is a terrific idea, one we have put into practice for years. We are required to do more than simply disclose the nature of our professional relationship, and our fees associated with opening accounts at Gettings Reed Financial. We must be proactive in our communication and disclosures, including any potential conflicts of interest that may occur. I’ll provide some background and comment on our responsibilities, processes and standards, as well as our philosophy on being a fiduciary – placing your interests first.
Background - The SEC is an independent federal regulatory agency created in 1934 on the heels of The Great Depression. It was part of FDR’s New Deal program to help prevent future market disasters. Prior to its formation, there was very little oversight which led to abuses. A primary responsibility of the SEC is to protect investors. They accomplish this, in part, by providing information and educational tools to individual investors and by regulating and enforcing the rules for investment professionals; rules and regulations we follow.
The SEC does not expect all firms to do everything the same way. They recognize, for example, that Gettings Reed Financial is unique and different than other firms, however, we all must follow the very same rules and regulations. Our policies and procedures, are designed specifically for us; when you acknowledge our fees, and discretionary authority to manage your investments, we truly want you to understand and know exactly what you are agreeing to when you sign your name. We are living in a time when information travels quickly and is often overwhelming. Facts and fiction are often blurred which makes it challenging to truly stay current. When we meet, we will review and discuss the nature of our services. We are always available to answer your questions and your concerns. We embrace the rules and oversight of the SEC because they provide protection for investors and hold us accountable!
I’ll dig a little deeper next time.
Bill Gettings, CFP®