Investment Consulting
Investment consulting is the giving of professional advice by an investment consultant in order to support the investor, whereby advice may initially start with individual recommendations for investment purchases through to preparing an extensive investment strategy including long term support.
However, the investor always remains free to follow/not any recommendations given by his investment consultant. It is always the investor`s decision and responsibility to effectively implement any advice given by his consultant.
The right to decide differentiates investment consulting from asset management: The former entitles the investor to decide whether/not to implement the investment advice given the latter entitles only the asset manager to implement any investment strategy which has previously been agreed upon with the investor. Here, the investor waives his right to control and agree to each step beforehand.
Just as asset management, investment consulting is being offered by banks (so-called internal investment consulting) and also by third parties (so-called external investment consulting).
In most cases the investment consultant`s liability for faulty consulting is similar to that of the asset manager.