Six Advantages of Working with an Independent Registered Investment Advisor (RIA) like Hudson Wealth over a Stockbroker

  Hudson Wealth is a division of Hudson Companies, led by Christopher Conover and his team of SEC Registered Investment Advisors (RIA). As such, there are significant differences between what we do as registered investment advisors and how we do it versus traditional brokers and bank representatives. Independent Registered Investment Advisors (RIAs) are held to a higher standard than stockbrokers when it comes to putting investors’ interests before their own. Independent RIAs have what is called a “fiduciary duty” to their clients, which means they must, among other things:      

How working with Hudson Wealth’s registered investment advisors is different from working with a stockbroker?


​Hudson Wealth
✓ ​Has a fiduciary duty to act in the best interests of their clients at all times
✖ ​Is generally not a fiduciary to their customers and therefore does not make decisions that are solely in their customers’ best financial interests
✓ ​Provides clients with a Form ADV that describes exactly how the registered investment advisor does business and obtains the client’s consent to any conflicts of interest that do exist in the investment advisor’s business
✖​ ​Is not required to provide customers with any comparable type of disclosure
✓ ​Does not trade with clients as principal
​✖ ​Often earns significant undisclosed profits by trading as principal with their customers
✓ ​Charges clients a fee negotiated in advance and cannot earn any other profits from their clients without the clients’ prior consent. Most registered investment advisors are paid an asset–based fee, so their interests are aligned with their clients. Investment advisors manage money in the best interests of their clients
✖ ​Brokerage firms’ revenues may increase even if the customers’ assets shrink
​A registered investment advisor does not engage in other business activities like investment banking or underwriting
​✖ ​Often engages in other businesses that may cause a brokerage firm’s interest or attention to focus on other areas of the firm outside of their retail brokerage business and customers



“You should fire your broker and find an investment advisor. Brokerage firms would like you to think that they perform the same functions as investment advisors. Many brokers call themselves ‘financial consultants’ or ‘financial advisors’. But they are not the same as independent investment advisors…an investment advisor’s fiduciary duty is on a higher plane, like that of a lawyer, a trustee, or the executor of an estate.”

-Arthur Levitt, Former SEC Chairman