Better Business Model
RoseCap chose to be an independent, fee-only, investment advisor because we believe this provides the best level of service for our clients. As an independent advisor, RoseCap is free from the influence of large institutions. Also, as a Registered Investment Advisor under the Investment Advisers Act of 1940 we are obligated to act as a fiduciary on behalf of our clients. Fiduciary duty is not only something that RoseCap accepts, but it is something we welcome. In addition to providing objective investment advice to our clients, we avoid selling high commission products such as life insurance and annuities to clients. Taking the role of a trusted advisor rather than a salesman is something that is very important to RoseCap, and should be very important to clients as well.
I believe that any industry in which a client in a position of informational disadvantage seeks the advice of a professional, the professional should not receive compensation based upon the advice provided to the client. It’s a shame this business model is still present in the financial services industry. The fee-only advisor with fiduciary duty is a big-step in the direction of better customer service.
In addition to aligning our incentives with the best interest of the client, RoseCap has taken steps to distinguish itself from other financial services firms. We perform our own research and typically use Exchange Traded Funds (ETFs) to provide asset class exposure to clients. In this fashion, we are not a “manager of managers” and the clients will save significantly on fees as well.