Here are a few tips you can employ to ensure you are entrusting the right people, team, and resources with your wealth. Hire an expert who has experience conducting background checks on investment professionals who can:
- Conduct a thorough background check of the team: Look for signs of red flags, which can include foreclosures, bankruptcies, adverse media, lawsuits, or a DUI conviction.
- Check their professional background: Dishonest individuals may try to conceal or falsify their record of employment.
- Conduct a search on FINRA
- Search the Investment Advisor Public Disclosure (IAPD)
- Review their professional designations
While this list is not exhaustive, it is a good place to start the due diligence process as it relates to picking an investment advisor. Remember, background checks are not a one-and-done. Even if you’re currently investing with various teams and funds, implement an annual background process, and make it a part of your annual advisory review. Just like performance, backgrounds change. Investors need to be aware of these changes, as they can indicate that a person might not be trustworthy or the best person to work with. Align yourself with experts who are well-versed in conducting background checks on investment professionals. This is an area where being pennywise and pound-foolish could get you and your financial security into trouble. Don’t leave simple tasks like systematic background checks to chance because doing so could leave you and your family’s financial security exposed.
At Atténuer Risk, our process of building a risk management architecture goes beyond your insurance policies. We work with you, and your team to build a holistic risk architecture that includes a strategic risk management plan with key performance indicators to make sure risk mitigation tasks are being conducted with regularity.