Investment Consultants and the roles they play in the financial services world
Investment Consultants (ICs) are independent financial advisors hired by companies and private individuals to provide advice on how to manage their finances. They are expected to have extensive experience in financial markets and instruments and be skilled at identifying investment opportunities, assessing risks, analyzing current trends and potential future trends, and developing a robust investment strategy. In order to qualify as an Investment Consultant, an individual or firm must have a minimum of five years of experience as a Financial Advisor/ Analyst in Private Financial Markets. They must also pass an examination based on Securities and Exchange Commission (SEC) rules that tests both their knowledge and their ability to analyze and make recommendations about investments. There are few requirements for becoming an Investment Consultant including but not limited to: a MBA degree, three years of experience in financial advisory services, and three years of experience in investment banking or investment management.
Investment Consultants are independent financial planners who assist corporate investors, government entities, and individual clients with the creation and implementation of comprehensive investment strategy to achieve specific investment goals. These strategies are based on the specific needs of each client and the investment consultant’s understanding of the key factors that affect that needs. Investment Consultants advise their clients on which assets, asset classes, and nations to invest in as part of the overall investment and wealth building strategy and portfolio building process. An Investment Consultant is only one part of a team of professionals who work together to develop an investment strategy. The key role of an Investment Consultant is to provide strategic direction to the company while the other members of the team perform the specific tasks required. Some of the other members of the team include investment consultants, financial planners, insurance sales reps, tax professionals, accountants, bankers, legal professionals, and real estate professionals.
Investment Consultants are often referred to as “self-directed insurance agents” or “self-directed pension specialists”. In today’s ever-changing marketplace investment consultants must stay up-to-date on changes in annuity and mutual fund industries, investment industry news, emerging fundable products, as well as changes in self-directed insurance industry rules. The Investment Consultant’s duties and responsibilities may vary depending on the complexity of their investment management function, the size of their firm and their client base. Laminating services, on the other hand, require little research and are primarily focused on the identification and assessment of appropriate risk factors, asset managers, and LAMIs.
Investment Consultants are responsible for providing a sound, well-organized, and comprehensive investment advice to their clientele. They ensure that their recommendations are practical, feasible, beneficial, and economically sound to their clients and their institution. Investment Consultants can also offer their clientele a comprehensive examination and evaluation of an investment proposal. They perform this analysis by communicating directly with the client, by reviewing and evaluating the client’s financial statements, by coordinating and working with auditors, by evaluating and developing a client’s investment objectives, and by communicating directly with management. Because of their dedication to their clientele and because most LAMIs work on contingency basis, they are often paid on a performance-based fee basis.
An Investment Consultant may find themselves performing other duties as well. For example, they may find themselves acting as legal or business advisor. This may be because an LAMI may have a large number of complex transactions under his/her wing and simply needs some legal advice. In addition, some LAMIs have a large number of institutional clients and a financial or accounting responsibility.
Investment Consultants offer a wide range of financial services, ranging from investment securities and derivatives to global investments and municipal bond issues. Some LAMIs also provide direct investment management services to individual investors or institutional clients. If you’re looking for a way to make money in the financial services sector, consider becoming an investment consultant.
