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About Cothran Capital, LLC

 

Established in 2010, Cothran Capital, LLC is a full service registered Investment Advisor firm offering Asset Management, Financial Planning and Tax/Estate Planning.  Our unique approach is grounded in Nobel-Prize winning financial principles.

Cothran Capital, LLC takes our fiduciary responsibility very seriously.  Our first priority is to our clients and educating them on the truth about investing.  We expose the self-centered schemes of Wall Street that are designed to siphon dollars from the average investor.  Our firm cuts through the fog created by the Wall Street bullies and the main stream media.  We guide investors to a clear and confident understanding of prudent investing.


What is a Registered Investment Advisor?

“A fiduciary is an individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein the fiduciary has a legal obligation to act for another’s benefit.”

You are wrong if you think that anyone offering financial advice to their clients is a fiduciary. Stockbrokers (also called “Registered Representatives”, “Account Executives”, “Financial Advisors” or “Wealth Managers”) and Certified Financial Planners (CFP) affiliated or employed by broker-dealers are NOT fiduciaries. (1)

A Registered Investment Advisor (“RIA”) subject to the Investment Advisers Act of 1940, is a FIDUCIARY.(2)

Cothran Capital is a Fiduciary.

The legal investment advising standards that govern a NON-FIDUCIARY stockbroker and a FIDUCIARY RIA are very different.

• A NON-FIDUCIARY stockbroker follows only the “suitability” standard, which does not require a stockbroker to place the interest of its clients ahead of its own. Under the NON-FIDUCIARY suitability standard, a stockbroker need provide only “suitable advice” to its clients – even if the stockbroker knows that the advice is not the best advice of the client.
• A FIDUCIARY RIA must follow the “trust” standard –the highest known in law– which requires it to place the interests of its clients ahead of its own and fulfill critical fiduciary duties of trust and confidence. Under the fiduciary trust standard, a Registered Investment Advisor must provide its “best advice” to a client.

Even if a NON-FIDUCIARY stockbroker wanted to follow the “trust” standard of law and become a fiduciary to its clients, it cannot do so because of the contract it has with its broker-dealer. Such contracts require the stockbroker to place the interests of the broker-dealer before the interests of the stockbroker’s clients.

A stockbroker owes fiduciary duties ONLY to its broker-dealer – not to its investment clients. A RIA owes FIDUCIARY duties only to its investment clients because it does not have a broker-dealer.

The critical difference between a stockbroker and a RIA is that the RIA is subject to the high fiduciary legal standard when providing advising services while the stockbroker is not.

NOTE: (1) to be considered a FIDUCIARY, a certified financial planner (“CFP) cannot be affiliated or employed with a broker dealer.
(2) In Supreme case “SEC v. Capital Gains Research Bureau, Inc. – 375 US 180 (1963), the court justice rules that RIA is recognized as a fiduciary.