I found this answer to be very interesting and disturbing. Since I had no idea what portfolio management actually was, I asked the manager several questions to better understand his concept. He explained that it consisted of managing a portfolio of stocks or bonds while maintaining a certain level of diversification.
In the past, portfolio management companies often sold products and services under their own name. They would then use a “passport” to provide you with your portfolio information and tell you how to manage it. Under this definition, he was providing advice on how to take my exam for me to get the education I needed in order to become a portfolio manager. This meant that he was using his name and reputation to benefit himself by passing my exam for me.
The truth is that using your own name and reputation for your own personal gain is unethical. However, it is the job of the portfolio management company to manage your portfolio for you. You should never rely upon the expertise of a third party for the advice that you need to improve your financial portfolio management. In fact, this is probably one of the most unethical activities that a portfolio management company will engage in. If they attempt to use your good reputation in order to encourage you to take an unnecessary exam, you have the right to bring legal action against them.
Fortunately, there are several ways to avoid being taken advantage of by an unscrupulous portfolio management company. Most importantly, if you are interested in improving your financial portfolio management, you should not be compelled to take any exams. You have the right to request that no tests are taken, and you should be provided with information on how you can opt out of any tests. It is also up to you to investigate the background and reputation of any third party that is offering to manage your portfolio for you.
The best way to avoid entanglement with a potentially unscrupulous portfolio management company is to hire a competent professional that can manage your portfolio on your behalf. A qualified financial planner or investment analyst can be very useful in educating you about asset allocation and other relevant topics. In addition, he or she may also be able to provide you with educational advice. These types of professionals can often be found through work for firms that specialize in financial portfolio management.
Before engaging the services of a professional portfolio management company, it is crucial that you thoroughly research their experience and background. This means that it is important to contact references and former clients to see what kind of service they can provide you. Do not feel obligated to hire the first company that contacts you; in fact, it can be in your best interest to try to contact at least two different companies before making a decision. This ensures that you receive adequate service and that you are able to compare the two companies to identify which one has the best track record.
Finally, while many people try to get by without a portfolio management company’s help, it is imperative that you make sure that all of your accounts and investments are in the best possible hands. As you know, nothing beats having a solid portfolio management system to ensure that your money is protected. Do not let your financial future go by the wayside; seek out the help of a professional portfolio management company today. You will find that it is well worth your effort in the long run.