I was really hoping Sweep would chime in on this, but he’s MIA. Maybe he’ll come out of hiding for this one.
I am currently at an impasse with my current B-D. They are trying to tell me what I can and can’t do with my tax business. (Literally–my OSJ told me that I cannot explain the difference between a Traditional and Roth IRA to a client unless they agree to become clients of the B-D, and pay money to the B-D.) Yes–you read that right. A licensed CPA, with unlimited authority to practice before the IRS and the Tax Court, is not allowed to give tax advice on tax matter to his tax clients for whom he is preparing a tax return. As you might expect, this is an intolerable situation.
I’m debating on making the switch to an RIA firm that has asked me to come on board. I have talked to them and they seem to be really likable people, and we have a very similar investment philosophy. I could probably also salvage the relationship with my current B-D, or find another one.
In real life (not just on some piece of paper filed in the SEC’s basement), what is the difference between an RIA and the B-D world? I mean, the B-D has an RIA associated with it, so anything an RIA can do, a B-D can do, but not vice-versa.
Am I looking at this the right way? Or is the RIA world really so much better that I should jump ship and not think twice.
(Please do not recite the definition of “fiduciary” to me, or quote some ancient crap from the 1940 Act. I know the definition of “fiduciary”. I just don’t know what it means in real life.)