In a move that’s sure to raise concern among advisors, BrightScope is set to release a database (free registration required) that compares fees from RIA ADV forms available to the public on advisors’ websites. While the information is currently public, the fees are found in text, not set apart in tables, which can make it hard for a consumer to decipher them. BrightScope is putting that fee information, along with disciplinary actions and other info about registered reps and IARs, into a database that makes it easy for investors to compare fees and look up complete information about the advisor from multiple public databases.
But listing fees without a more complete description of the services — and perhaps information on their quality as well — could be misleading, and might push investors toward lower cost advisors. It might be like Morningstar only listing fund fees without returns and other qualifying information. Which funds would you select if only fees were available?
