In early November, Joe sat down with Professional Planner to talk about the value of having an Independent Member on Investment Committees.
On the Stephan Independent Advisory Investment Committee, our independent member is Dr Steve Garth. Steve’s expertise and experience contributes to the formulation and ongoing review of asset allocation and investment strategies and assists with the assessment of investment managers.
But why is it important to have an independent member on Investment Committees?
Joe explained, “In small practices, one can be blind-sighted or have many biases when it comes to investment decisions on stocks, managed funds or whatever. To remove some of those biases, it’s important for your Investment Committee to have a paid external party who asks the right questions and probes and probes to ensure there is some rigor around your investment approach.”
Having an independent external member ensures that all decisions are carefully researched and considered and nothing is done on a whim. Dr Steve Garth brings a wealth of knowledge, experience and insight to the table, which leads to more thorough discussions and well-rounded decision-making.
An independent external member brings an objective perspective to the committee, significantly enhancing the quality of decisions and, ultimately, contributing to the long-term success of the advisory practice.
