New nonprofit to rank advisors

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.”