Did you know that when it comes to global security, risk management and travel advice, you patronize a multi-billion dollar industry with no standardized regulation or independent global  accountability.  Much like managing your financial health and well being, traveling to and within a culture not your own comes with acuter and more severe consequences, should you receive counsel from an entity whose interests compete with your own.  But how would you know if you were receiving unbiased counsel?

Finding unbiased international travel counsel is just as important as understanding the difference between an independent financial adviser and a financial broker.  The devil is in the details...

…only in this industry, it’s those details that could mean the difference between success and utter personal crisis!

You would think that the roles and responsibilities would be clear and there would be a strong line between individuals and companies who call themselves advisers and those who are truly service brokers. The obvious answer is that advisers give impartial advice based on the best interest of the client and brokers sell products as a third party.

In the financial sector, advisers are sworn to put their clients’ interests ahead of their own, thanks to the Investment Advisers Act of 1940. This Act defines an adviser as, “Any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities.” The Act also precludes brokers from being considered investment advisers.

In that case, what is a broker? The act also provides this definition. A broker is, “Any person engaged in the business of effecting transactions in securities for the account of others, but does not include a bank.” While advisers must act in their client’s best interest at all times, brokers do not face this requirement. Brokers must understand their client’s complete financial picture and must direct them towards appropriate products.

Generally, investment advisers sell their services with a fee; perhaps hourly or per service, either flat or as a percentage of assets (to make financial advice in reach for those without millions of dollars to investment). Brokers tend to earn a commission for each product that they sell, just like your car salesman.

Here’s where the line gets blurred; when it comes to risk consulting in the context of personal travel and international project and people management, most companies sell themselves as risk “advisers”.  This implies impartial advice based on your best interest.  The reality is, most companies make their money “brokering” services for a commission, or they sell direct services for a fee.  Though there is nothing wrong with this practice, because there is no industry regulation, you may never be sure you are receiving wise counsel without evident conflict of interest.

It’s difficult to know who to trust, and blurred lines between advisers and brokers don’t help the average person to make informed decisions.

What makes G3S2 different?