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Our Story | Who We Are | Financial Advisor vs Traditional Broker
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The Story of DeFrehn Consulting
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In order to know about the company you should know a little about me, Sean DeFrehn. I got my start working at two of the biggest Broker Dealers in the business. Learning how they operated from the inside I often found situations where what was being offered to the client could be improved upon. As a Financial Advisor I did not have the power to make these changes. One day, while reading a trade magazine I learned about a part of the industry that allowed for advisors to make decisions as to the best ways to help clients, the Independent Advisor. After several months researching the pros and cons of independence as well as the many Broker Dealer options for the Independent Advisors, I created DeFrehn Consulting in 2002.
Partnering with Triad Advisors as our Broker Dealer has provided real advantages. The greatest advantages are the range of investments clients have access to and how clients pay for services. Working with Triad Advisors, the number of investment options available to for both accredited and unaccredited investors are many times what can be offered through most Broker Dealers. As an Independent Investment Advisor, DeFrehn Consulting can also offer multiple alternatives for clients to pay for the services they receive. The most common is a fee based on a percentage of the assets being managed as opposed to the traditional commission or sales charge based on a transaction taking place. Best of all, the client can choose the option that is best for them. There are many other options and advantages that DeFrehn Consulting can offer as you will see.
A difficulty I’ve found is that it takes more time to explain who DeFrehn Consulting is without the name recognition of a larger, more heavily marketed firm.
Thank you for taking the time to get to know a little more about DeFrehn Consulting and if you have any questions please call or email me and I’d be happy to answer them.
Sean DeFrehn
President
DeFrehn Consulting
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Who We Are
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Local - We are based in Germantown, MD and work nationally from new York and Florida to California. You can be confident that we can help you.
Independent - We do not provide proprietary products. We work with each client to find the best investments in the marketplace. We are affiliated with Triad Advisors an Independent Broker Dealer.
Investment Advisory Firm - We advise our clients in many areas of finance, each depending on their needs and desires. Our clients often work with us in areas including Investments; Retirement & Financial Planning; Banking; Life, Health & Long Term Care Insurance and others.
Our Support
DeFrehn Consulting Offers Securities through National Financial who may Act as the Custodian of Assets that may includeStocks, Bonds, CDs, Alternative Investments, & Mutual Funds.
Other investment companies such as Mutual Funds and Alternative Investment Companies also act as a Custodian when purchases are made directly with that company. These purchases are supervised by Triad Advisors.
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Financial Advisor vs Traditional Banker
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There has been a great deal of recent press regarding the investment advice clients receive from their financial professional. Specifically, you may have heard about a reversal of SEC Rule 202(a)(11)-1, commonly known as the Merrill Lynch Rule. At issue has been a clarification of the role and levels of responsibility of a financial advisor versus those of a traditional broker. I would like to offer a brief explanation of the differences so you may make an informed decision as to the relationship you would prefer to develop with your own consultant.
There are effectively two types of financial services available to investors: 1) advice given by a Registered Investment Advisor (RIA), or “financial advisor” and 2) recommendations given by a representative of a brokerage firm, or “broker.” Depending upon your circumstances and the products or services you require to meet your personal goals, either one of these types of individual’s services might be appropriate for you.
Although we primarily operate as financial advisors to our clients, our firm is also able to provide a broker relationship if that is a client’s preference. From a regulatory perspective, financial advisors are usually held to a higher standard of client responsibility than traditional brokers and must act in the client’s best interest. Below you will find some of the key differences between the two roles to help eliminate some possible confusion.
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Broker
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Investment Advisor
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Compensated on a commission basis and is paid by the client and sometimes by another company based on the product purchased. Some products are only available on a commission basis.
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Charge clients a fee, often based on a percentage of assets under management negotiated in advance, and usually cannot receive other compensation from their clients without prior consent.
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Held to a suitability standard. The products recommend are suitable for the investor.
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Has a fiduciary responsibility to the client’s investments. This means that I act in your best interests, not my own.
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A representative of a Broker/Dealer. The Rep holds a registration that allows them to offer specific products to the public.
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Operates in a Registered Investment Advisory firm. I hold a specific registration in order to act as an investment advisor and offer conflict-free advice.
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Notice:
Securities Offered through Triad Advisors member FINRA / SIPC.
Always consult an investment professional before making investment decisions.
DeFrehn Consulting
6
Mill Pond Ct.
Germantown,
MD
20876
Phone 240-720-5153
sld@DeFrehnConsulting.com
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