Rule #4: My Investments Must Be Audited by Federal Regulators and/or an Independent Third Party

Regulation means that some official government agency has specific jurisdiction over the activity of the financial advisor and investment firm. Federal regulation should be favorable for the client’s protection. Quality regulation means that someone can be held accountable for the physical safety of your assets. (This differs from market risk—what can happen to those assets based on market fluctuations.) In general, clients and advisors should welcome the components of federal regulation when it comes to securities.

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