This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

From time to time, questions come up about the differences between financial advisers and the firms that employ them. How to distinguish advisers is unnecessarily complex, in part because of terminology — everyone is a "financial adviser" nowadays.

Plus, regulation no longer makes things clear. Now, even the biggest transactional firms (broker-dealers) are registered as investment advisers, even though each is governed by two different standards of care (fiduciary versus the lesser suitability standard).

Since 2011, the idea of "harmonizing" the two sets of standards has been discussed by regulators, but it remains unresolved to this day.

As a result, it is still important to distinguish between advisers. To assist, the Investment Adviser Association, a nonprofit of which I am a member, posted a list of questions consumers can ask when interviewing advisers. Founded in 1937, the IAA played a major role in the enactment of the 1940 law regulating investment advisers.

Under "Questions to Ask," the IAA says this:

"After identifying your investment goals, you should interview investment advisers to decide which one would best be suited to help you achieve your goals. Asking detailed questions will help you determine your comfort level with the prospective adviser on both a personal and professional level. Some questions you might ask include:

"1. Are you a fiduciary, i.e., are you required by law to place my interests ahead of your own at all times? Are you willing to acknowledge your fiduciary duty in writing?

"2. How are you paid? Do you make more money if I buy a particular stock, bond, or mutual fund over another investment? If so, would you still recommend this investment and why? Does your firm hold prize contests for sales?

"3. What products and services does your firm offer? Are recommendations of products and services limited? If so, why?

"4. What are the potential conflicts of interest surrounding the investment advice that you will give me? What policies have you instituted to avoid or at least mitigate any such conflicts?

"5. What is your investment philosophy? How does your investment philosophy differ from other investment adviser firms?

"6. How often will we meet? How often will I receive written reports about my portfolio?

"7. What happens when you place an order for my account? Could I get a better price (cost and/or commission) if you sent my orders to a different market or broker to be executed?

"8. Describe your typical client. May I contact your long-term clients as references?

"9. How long has your firm been in business? What are the qualifications of the investment and professional personnel in the firm?

"10. With respect to the person who will manage my account, what experience do you have, especially with people in my circumstances? Where did you go to school? What training do you have in the investment management field? What is your recent employment history? What other firms have you been registered with? What is the status of those firms today? What licenses do you hold?

"11. Where does your firm invest its own money? Is it invested similarly to that of your clients?

"12. Have you ever been disciplined by any government regulator for unethical or improper conduct or been sued by a client who was not happy with the work you did? How many lawsuits or arbitration cases have been filed against you and against your firm? What were the outcomes?

"13. Can you provide me with a copy of the registration documents that you filed with the SEC? For registered investment advisers, ask for a copy of Parts 1 and 2 of their Form ADV. For investment adviser representatives of the adviser, ask for a copy of their Form U-4."

If you would like to access IAA information, go to investmentadviser.org.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant of Stamford, Conn.) and award-winning author, welcomes your questions/ comments (readers@juliejason.com).