A new nonprofit organization is trying to restore investor confidence in quality advisory practices.

Aurora, Colo.-based National Association of Board Certified Advisory Practices (NABCAP) aims to provide objectivity for investors seeking what the organization is calling true “long-term success” in advisor-client relationships – a degree of excellence that isn’t based on assets under management or revenues produced.

“An unaffiliated nonprofit organization has emerged as the best approach to conquer the daunting challenge of reforming the public’s perception of the industry and its professional membership,” NABCAP states on its newly launched Web site (nabcap.org). “The Board of Directors have developed a formula whereby the highest probability of an investor’s long-term success could be married with the best overall advisory practices. Separating and distinguishing worthy practitioners from the industry’s sea of ‘advisors’ seems to be the only answer. The difficulty lies in the clear necessity for absolute transparency in an industry where transparency has never existed.”

Advisory practices will be rated on 20 different categories, including investment and risk philosophy, team dynamics, years of experience, credentials and designations, percentage of alternative investments, fee and cost structure and customer service, NABCAP’s founder and President Todd Schwartz told the Denver Business Journal last week. Another key element to the advisory practice assessment is evaluating average client portfolio size, the organization emphasizes.

Advisory practices will be charged $245 to participate and reviewers will verify information provided by the firm including interviewing team members and contacting clients, according to DBJ.

NABCAP’s founder tells DBJ he hopes to have information published on the organization’s Web site by fall and that reviews will be printed in local and national publications.