New Tech That Raises Red Flags About Prospective Clients

A prospective client recently telephoned Rob Hockett and asked if he could, through Hockett’s firm, invest $5 million in emerging market funds. To most advisors, such a scenario probably would sound enticing, but also prompt wariness. It sure did for Hockett. “The first question we asked was, ‘Does this follow our investment philosophy?’ and we also did some background checking on the individual,” says Hockett, president of Cambridge Wealth Counsel, which has $255 million in assets under management and offices in Utah and Georgia. Hockett eventually concluded that the proposed relationship did not abide by his firm’s investment philosophy, and he didn’t want his firm to serve only as a pass-through for one-shot investments. But prior to that determination, Hockett also sought to engage in some due diligence to assess…


Link to Full Article: New Tech That Raises Red Flags About Prospective Clients