Worst of Both Worlds?


(October 9, 2019) A recent study brought to light by Investment News confirms what the investment industry has long known about dual-registered advisors—they often fall short of their fiduciary standard. Dually registered advisors are registered with both FINRA and the SEC. The study, titled The Worst of Both Worlds? Dual-Registered Investment Advisors, by Professor of Finance Nicole Boyson, clearly demonstrates that, on average, dually registered advisors have more disciplinary actions, have more conflicts, charge higher fees, and have worse investment performance than independent advisors, like Sunrise Advisors. For her study, Professor Boyson examined SEC filings of nearly 7,000 dual-registered and independent advisors. Click here for a summary of Professor Boyson’s study, or here for the entire report.

The takeaway from the study is that on average independent advisors are more likely to act in the clients’ best interest than dual-registered advisors. To check your advisor, go to FINRA’s BrokerCheck site. Your advisor is dual-registered if he or she has the following identifier: “B Broker Regulated by FINRA“.

Sunrise Advisors is a “fee-only”, independent Registered Investment Advisors. We are regulated solely by the Securities and Exchange Commission. This ensures our fiduciary duty for our clients at all times.

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