A serious adviser is transparent and takes account of the previous knowledge and capabilities of the customer. He provides honest, open information on costs and risks. When giving advice he also points out the alternatives to the respective proposal. In addition, he also provides regular information on the progress of the investment.
Integrity means abiding by the mandate, contracts, customer’s investment goals and other instructions.
He places doubt upon his integrity if a deposit is filled with his own products or if an investment in structured products is placed with risky counterparties involving fees of up to 4% or fixed payments.
The Swiss Association of Financial Advisers defines integrity on the basis of four points:
- Does the adviser have specialist professional qualifications?
- Can he demonstrate at least three years professional experience in the field in which he is offering advice?
- Does he have written terms and conditions of business which clearly show whether he is a salesman or not?
- Can he provide written documentation of fees and charges based on the recommendations of a professional association?