SpringReef Partners Addresses “Questionable Clarity” Across The Financial Services Industry

June 3, 2011 - PRLog -- SpringReef Partners, an independent, unbiased consultancy providing insight to high net worth families and organizations on the selection and performance of their financial advisors today published its latest edition of SpringReef Insights, a monthly publication dedicated to providing readers with independent guidance and perspective on critical aspects of the financial services industry.

In the June edition of SpringReef Insights, titled “Questionable Clarity,” SpringReef Partners’ founder and president Doug Black discusses the two concerns most commonly surfaced by clients and readers – both involving the frequent lack of clarity and communication between financial advisors and their clients – and advises readers on how to best regain a sense of transparency surrounding their investment management.

•   How do I know if my financial advisor is putting my interests first?
•   Am I being charged appropriately for my advisor’s services?

When it comes to determining if a client’s best interests are at the forefront of each investment decision, Black explains there is a wide gap between what is expected of financial advisors and what actually takes place. Citing recent data from Cerulli Associates, he states that current regulation requires only about 11% of the 336,000 financial advisors in the United States to uphold the basic fiduciary standard; that is, to put a client’s interest first, act with diligence, disclose all relevant facts and avoid potential conflicts.1

The lack of clarity continues to the issue of appropriate pricing, which can differ dramatically across firms and advisors. “When this variance in pricing is combined with a lack of consistent, clear communication to the client, confusion is inevitable,” Black says. He references the recent findings from Cerulli Associates, stating that “nearly two-thirds of investors believe they do not pay for financial services (i.e. they are complimentary), or are unsure of how their advisors are paid.” 2

“This lack of clarity only serves to fuel the distrust so evident in many of our client conversations,” says Black. He comments that “for an industry so adept at describing what it wants you to know, one must question the lack of clarity about the critical things you need to know.”

To find out more about this timely discussion and read the latest edition of SpringReef Insights, please visit http://www.springreef.com/springreef-insights.

About SpringReef Partners, LLC
Headquartered in Short Hills, New Jersey, SpringReef Partners, LLC is dedicated to helping high net worth families and organizations evaluate and select the most exceptional financial advisors. For more information, please visit: www.springreef.com.


1 Cerulli Associates. The Cerulli Edge, Advisor Edition, 1st Quarter, 2011.  
2 Cerulli Associates. The Cerulli Edge, Advisor Edition, 2nd Quarter, 2011.  


SpringReef Partners, LLC is a state registered investment adviser in New Jersey. The purpose of this material is limited to the dissemination of general information regarding the services offered by SpringReef Partners, LLC. It is not intended to be a solicitation or offer to sell investment advisory services to residents of any state in which SpringReef Partners, LLC is not currently authorized to do so. Form ADV Part II, which details the business practices, services offered, and related fees of SpringReef Partners, LLC, is available upon request. Investing involves risks, and there is always the potential of losing money when you invest. Choosing a financial advisor recommended by SpringReef Partners, LLC does not assure a profit or protect against loss.


Copyright ©SpringReef Partners, LLC 2011

# # #

SpringReef Partners works of behalf of high net worth families and organizations as an independent partner and advocate in the wealth management process. For more information please visit http://www.springreef.com