Why real advice starts with alignment and how integrity defines good investing.

In the financial industry, many advisors and brokers recommend products they do not hold in their own portfolios. This reveals a conflict of interest: the intermediary’s commission or incentive is prioritized over the client’s real benefit.

Common examples:

• • High-fee funds: The advisor recommends a mutual fund with 2% annual expenses because of kickbacks, while personally investing in low-cost ETFs.

• • Complex investment-linked insurance: Life policies with a savings component are promoted due to high upfront commissions, even though returns are poor and the advisor doesn’t own any.

• • Opaque structured products: Banks sell hard-to-understand structured notes with hidden spreads, while their own investment teams prefer straightforward bonds or equities.

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  • Portfolio churning: Clients are advised to trade frequently to generate commissions, while the advisor’s personal portfolio follows a simple passive strategy.

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What true advice means

A true advisor must be aligned with the client, investing in the same products they recommend and charging for advice, not for pushing products.

This requires:

• • Clear incentives: revenue must come from advice and management, not from product sales.

• • Skin in the game: having their own money invested in the same strategies they propose, showing conviction and commitment.

• • Full transparency: openly explaining fees, risks, and conflicts of interest in a way the client can easily understand.

• • Shared objectives: building a long-term relationship where the advisor’s success is directly tied to the client’s success.

In short,