Lansdowne Wealth Management, LLC (LWM) is a Registered Investment Advisor (RIA) in the state of Connecticut.
The anti-fraud provisions of the Investment Advisers Act of 1940 and Connecticut state laws impose a duty on Investment Advisers to act as fiduciaries in dealings with their clients. This means the adviser must hold the client's interest above its own in all matters. Conflicts of interest should be avoided at all costs. An RIA does not sell securities, nor are they compensated through commissions for the investments they recommend. The only compensation they receive is from you, the client. This differs from a Registered Representative (RR or "Stockbroker") of a brokerage firm, who is a sales agent of the firm, and must only determine that an investment is suitable for a client prior to recommending they purchase the investment. RR's may receive commissions, fees, or other forms of varied compensation depending on the type, and amount of investment securities they sell to clients.
The SEC has said that an Investment Advisor has a duty to:
- Make reasonable investment recommendations independent of outside influences.
- Select broker-dealers based on their ability to provide the best
execution of trades for accounts where the adviser has authority to
select the broker-dealer.
- Make recommendations based on a reasonable inquiry into a client's
investment objectives, financial situation and other relevant factors.
- Always place client interests ahead of its own.