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2017 | OriginalPaper | Buchkapitel

3. Financial Advisory: Basic Roles and Functions

verfasst von : Caterina Cruciani

Erschienen in: Investor Decision-Making and the Role of the Financial Advisor

Verlag: Springer International Publishing

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Abstract

This chapter looks at the different roles that advisors play in the client–advisor relationship. Looking at empirical data, the first section of this chapter shows that the main goal of financial advisory—improving financial returns—is not effectively pursued.

This chapter looks at the ancillary roles that advisors play, which include information transmission, financial education and biases management. The literature assessing the effectiveness of the different ancillary roles is reviewed. The evidence reviewed suggests that the premium that advisors bring to the relationship with their clients can be found in the support they provide at emotional level. Framing the client–advisor relationship as a fiduciary relationship based on trust allows reconciling the evidence reviewed.

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Vorheriges Kapitel Different Views on Economic Rationality: Affect and Emotions

Nächstes Kapitel Financial Advisory: Normative Developments and Incentives

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Titel: Financial Advisory: Basic Roles and Functions
verfasst von: Caterina Cruciani
Verlag: Springer International Publishing
Buch: Investor Decision-Making and the Role of the Financial Advisor
Print ISBN: 978-3-319-68233-4

Electronic ISBN: 978-3-319-68234-1

Copyright-Jahr: 2017
DOI: https://doi.org/10.1007/978-3-319-68234-1_3