Do you provide client references to prospective clients?


Offering client references or professional references is a very sensitive issue. As a firm policy, Gold Medal Waters does not offer client references to potential clients of the firm.

Here is our explanation:

“Selection Bias” for a Financial Advisor

When a financial advisor gives references, it’s only natural that the references provided will be clients who are happy with the firm’s service. The SEC and many States have ruled that this bias is unacceptable and have enacted policies that prohibit financial advisor firms from giving references.

The only way around the issue is for the financial advisor to open their entire client database to offer an unbiased access to all its clients.

Gold Medal Waters feels that this violates our privacy policies and imposes upon our clients for the firm’s own benefit. It’s also contrary to our fiduciary duty of confidentiality.

“Testimonials” for a Financial Advisor

“Testimonials” are prohibited under the Investment Advisors Act of 1940. Rule 206(4)-1(a)(1) prohibits Registered Investment Advisors from publishing, circulating, or distributing any advertisement “which refers, directly or indirectly, to any testimonial of any kind concerning the Investment Advisor, or concerning any advice, analysis, report or other service rendered by such Investment Advisor.”

Gold Medal Waters views client references as a testimonial. Thus, we remain apprehensive about venturing into this gray area.

To enable you to get information about us, we are happy to give you a list of professionals who know our financial advisors and our firm and who are willing to help you in your discovery.

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