Hi, I'm Jay Clayton chairman of the United States Securities and Exchange Commission
I'm here to talk to you about selecting a financial professional who can help you with investing
Investing has become increasingly important for many Americans
We're living longer and have more responsibility to fund our own retirements and other expenses
Including college and other education for many of us investing can be challenging we're worried
We'll make the wrong choices. We'll lose money or that it will take too much time and effort
One way to address these concerns is to work with a financial professional
My colleagues and I at the SEC want to help you with selecting between two types of financial professionals
That can help you with investing
brokers and investment advisers
We've put together a series of short videos to help you make the choice that is right for you
We want to arm you with a general understanding of these two types of financial professionals
The different services they provide how they are paid and importantly key questions. You should ask
Let's start with the two questions. I believe are most important first is the financial professional
registered with the SEC or a state regulator and
Second is the financial professional a broker or is the financial professional and investment adviser?
Let's start with the first question is the financial professional registered with the SEC or a state regulator
If a financial professional is registered
They have to follow rules that are designed to protect you if your financial professional is not registered with the SEC
Or a state regulator you do not have these important protections
Let's now turn to the second question is the financial professional a broker or an investment advisor?
Understanding which type of financial professional you're dealing with is key to understanding the services
You'll receive how you will pay for them
Obligations they have to you in the videos that follow
We will provide a basic overview of these differences
Please take the time to watch these videos and use the other tools available on our website
investor gov includes examples of some questions that can get you started in a
Conversation with the broker or investment advisor and if you're not sure what to ask try my favorite question
How much of my money is going to fees and costs and how much is going to work for me?
Thank you
