A new website allows investors, plan sponsors, and others to search for and find information on investment advisers. That website is http://www.brightscope.com/.
BrightScope states, “BrightScope®, Inc. is a financial information company that brings transparency to opaque markets. Delivered through web-based software, BrightScope data drives better decision-making for individual investors, corporate plan sponsors, asset managers, broker-dealers, and financial advisors. BrightScope primarily operates in two major segments: Retirement Plans and Wealth Management.”
Regarding retirement plans, BrightScope states that it provides ratings and analysis for participants, plan sponsors, and advisors. Regarding wealth management, BrightScope states that it presents information on financial advisors that can be used by investors to perform due diligence on their current or prospective advisor.
Reliable and timely information is always useful, so BrightScope’s service may be needed. However, a recent article states that many advisers claim that information presented by BrightScope about investment advisers is not accurate, especially information about an adviser’s assets under management. That article also states that an adviser can correct - for a fee - certain information displayed by BrightScope.
All investment advisers and brokers may want to determine whether information about them or their firm appears on BrightScope and, if so, verify that information.
