A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and, usually, an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a "legal person". The name company arose because, at least originally, it represented or was owned by more than one real or legal person.

In the United States, a company is a corporation—or, less commonly, an association, partnership, or union—to carry out an enterprise. Generally, a company may be a "corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing." It does not include a partnership or any other unincorporated group of persons, although such an entity may be loosely described as a company.

Meaning and etymology

A company can be defined as an "artificial person", invisible, intangible, created by Law, with a discrete legal entity, perpetual succession and a common seal. It is not affected by the death, insanity or insolvency of an individual member.

The English word has its origins in the Old French military term ''compaignie'' (first recorded in 1150), meaning a "body of soldiers", originally taken from the Late Latin word ''companio'' "companion, one who eats bread with you", first attested in the Lex Salica as a calque of the Germanic expression *''gahlaibo'' (literally, "with bread"), related to Old High German ''galeipo'' "companion" and Gothic ''gahlaiba'' "messmate". By 1303, the word referred to trade guilds. Usage of company to mean "business association" was first recorded in 1553 and the abbreviation "co." dates from 1769.

History

According to one source, "it may be formed by Act of Parliament, by Royal Charter, or by registration under company law (referred to as a limited liability or joint-stock company)." In the United Kingdom, the main regulating laws are the Companies Act 1985 and the Companies Act 2006. Reportedly, "a company registered under this Act has limited liability: its owners (the shareholders) have no financial liability in the event of winding up the affairs of the company, but they might lose the money already invested in it". In the USA, companies are registered in a particular state—Delaware being especially favoured—and become Incorporated (Inc).

In North America, two of the earliest companies were The London Company (also called the Charter of the Virginia Company of London)—an English joint stock company established by royal charter by James I of England on April 10, 1606 with the purpose of establishing colonial settlements in North America—and Plymouth Company that was granted an identical charter as part of the Virginia Company. The London Company was responsible for establishing the Jamestown Settlement, the first permanent English settlement in the present United States in 1607, and in the process of sending additional supplies, inadvertently settled the Somers Isles, alias Bermuda, the oldest-remaining English colony, in 1609.

Types

:''For a country-by-country listing, see Types of business entity.''

''There are various types of company that can be formed in different jurisdictions, but the most common forms of company (generally formed by registration under applicable companies legislation) are:''

A company limited by guarantee. Commonly used where companies are formed for non-commercial purposes, such as clubs or charities. The members guarantee the payment of certain (usually nominal) amounts if the company goes into insolvent liquidation, but otherwise they have no economic rights in relation to the company. This type of company is common in England.

A company limited by shares. The most common form of company used for business ventures. Specifically, a limited company is a "company in which the liability of each shareholder is limited to the amount individually invested" with corporations being "the most common example of a limited company."

A limited-liability company. "A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer", i.e., L.L.C.

An unlimited company with or without a share capital. A hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited.

''Less commonly seen types of companies are:''

Companies formed by letters patent. Most corporations by letters patent are ''corporations sole'' and not companies as the term is commonly understood today.

charter corporations. Before the passing of modern companies legislation, these were the only types of companies. Now they are relatively rare, except for very old companies that still survive (of which there are still many, particularly many British banks), or modern societies that fulfil a quasi regulatory function (for example, the Bank of England is a corporation formed by a modern charter).

Statutory Companies. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction.

Note that "Ltd after the company's name signifies limited company, and PLC (public limited company) indicates that its shares are widely held."

In legal parlance, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the shareholders. In a company limited by guarantee, this will be the guarantors. Some offshore jurisdictions have created special forms of offshore company in a bid to attract business for their jurisdictions. Examples include "segregated portfolio companies" and restricted purpose companies.

There are however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world.

Companies are also sometimes distinguished for legal and regulatory purposes between public companies and private companies. Public companies are companies whose shares can be publicly traded, often (although not always) on a regulated stock exchange. Private companies do not have publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions, private companies have maximum numbers of shareholders.

References

Further reading

Dignam, A and Lowry, J (2006) Company Law, Oxford University Press ISBN 978-0-19-928936-3.

John Micklethwait and Adrian Wooldridge, The Company: a Short History of a Revolutionary Idea (New York: Modern Library, 2003)

Category:Legal entities

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name	Walt Disney
birth name	Walter Elias Disney
birth date	December 05, 1901
birth place	Hermosa, Chicago, Illinois, U.S.
death date	December 15, 1966
death place	Burbank, California, U.S. Interred: Forest Lawn Memorial Park, Glendale, California, U.S.
occupation	Film producer, Co-founder of The Walt Disney Company, formerly known as Walt Disney Productions
yearsactive	1920–1966
spouse	Lillian Bounds (1925–1966)
parents	Elias DisneyFlora Call Disney
relations	Herbert Arthur Disney (brother)Raymond Arnold Disney (brother)Roy Oliver Disney (brother)Ruth Flora Disney (sister)Ronald William Miller (son-in-law)Robert Borgfeldt Brown (son-in-law)Roy Edward Disney (nephew)
children	Diane Marie DisneySharon Mae Disney
religion	Christian (Congregationalist)
party	Republican
signature	Walt Disney Signature 2.svg }}

Walter Elias "Walt" Disney (December 5, 1901 – December 15, 1966) was an American film producer, director, screenwriter, voice actor, animator, entrepreneur, entertainer, international icon, and philanthropist, well-known for his influence in the field of entertainment during the 20th century. Along with his brother Roy O. Disney, he was co-founder of Walt Disney Productions, which later became one of the best-known motion picture producers in the world. The corporation is now known as The Walt Disney Company and has annual revenues of approximately USD $35 billion.

Disney is particularly noted as a film producer and a popular showman, as well as an innovator in animation and theme park design. He and his staff created some of the world's most well-known fictional characters including Mickey Mouse, for whom Disney himself provided the original voice. During his lifetime he received four honorary Academy Awards and won twenty-two Academy Awards from a total of fifty-nine nominations, including a record four in one year, giving him more awards and nominations than any other individual in history. Disney also won seven Emmy Awards and gave his name to the Disneyland and Walt Disney World Resort theme parks in the U.S., as well as the international resorts Tokyo Disney, Disneyland Paris, and Disneyland Hong Kong.

The year after his December 15, 1966 death from lung cancer in Burbank, California, construction began on Walt Disney World Resort in Florida. His brother Roy Disney inaugurated the Magic Kingdom on October 1, 1971.

1901–1937: Beginnings

Childhood

Disney was born on December 5, 1901, at 2156 N. Tripp Avenue in Chicago's Hermosa community area to Irish-Canadian father Elias Disney and German-American mother Flora Call Disney. His great-grandfather, Arundel Elias Disney, had emigrated from Gowran, County Kilkenny, Ireland where he was born in 1801. Arundel Disney was a descendant of Robert d'Isigny, a Frenchman who had travelled to England with William the Conqueror in 1066. With the d'Isigny name anglicised as "Disney", the family settled in a village now known as Norton Disney, south of the city of Lincoln, in the county of Lincolnshire.

In 1878, Disney's father Elias had moved from Huron County, Ontario, Canada to the United States at first seeking gold in California before finally settling down to farm with his parents near Ellis, Kansas, until 1884. Elias worked for the Union Pacific Railroad and married Flora Call on January 1, 1888, in Acron, Florida. The family moved to Chicago, Illinois, in 1890, hometown of his brother Robert who helped Elias financially for most of his early life. In 1906, when Walt was four, Elias and his family moved to a farm in Marceline, Missouri, where his brother Roy had recently purchased farmland. In Marceline, Disney developed his love for drawing with one of the family's neighbors, a retired doctor named "Doc" Sherwood, paying him to draw pictures of Sherwood's horse, Rupert. His interest in trains also developed in Marceline, a town that owed its existence to the Atchison, Topeka and Santa Fe Railway which ran through it. Walt would put his ear to the tracks in anticipation of the coming train then try and spot his uncle, engineer Michael Martin, running the train.

The Disneys remained in Marceline for four years, before moving to Kansas City in 1911 where Walt and his younger sister Ruth attended the Benton Grammar School. At school he met Walter Pfeiffer who came from a family of theatre aficionados, and introduced Walt to the world of vaudeville and motion pictures. Before long Walt was spending more time at the Pfeiffers' than at home. As well as attending Saturday courses at the Kansas City Art Institute, Walt often took Ruth to Electric Park, 15 blocks from their home, which Disney would later acknowledge as a major influence of his design of Disneyland).

Teenage years

In 1917, Elias acquired shares in the O-Zell jelly factory in Chicago and moved his family back to the city, where in the fall Disney began his freshman year at McKinley High School and took night courses at the Chicago Art Institute. He became the cartoonist for the school newspaper, drawing patriotic topics and focusing on World War I. Despite dropping out of high school at the age of sixteen to join the army, Disney was rejected for being underage.

After his rejection by the army, Walt and a friend decided to join the Red Cross. Soon after joining he was sent to France for a year, where he drove an ambulance, but only after the armistice was signed on November 11, 1918.

Hoping to find work outside the Chicago O-Zell factory, in 1919 Walt moved back to Kansas City to begin his artistic career. After considering whether to become an actor or a newspaper artist, he decided on a career as a newspaper artist, drawing political caricatures or comic strips. But when nobody wanted to hire him as either an artist or even as an ambulance driver, his brother Roy, then working in a local bank, got Walt a temporary job through a bank colleague at the Pesmen-Rubin Art Studio where he created advertisements for newspapers, magazines, and movie theaters. At Pesmen-Rubin he met cartoonist Ubbe Iwerks and when their time at the studio expired, they decided to start their own commercial company together.

In January 1920, Disney and Iwerks formed a short-lived company called, "Iwerks-Disney Commercial Artists". However, following a rough start, Disney left temporarily to earn money at the Kansas City Film Ad Company, and was soon joined by Iwerks who was not able to run their business alone. While working for the Kansas City Film Ad Company, where he made commercials based on cutout animations, Disney became interested in animation, and decided to become an animator. The owner of the Ad Company, A.V. Cauger, allowed him to borrow a camera from work to experiment with at home. After reading the Edwin G. Lutz book ''Animated Cartoons: How They Are Made, Their Origin and Development'', Disney considered cel animation to be much more promising than the cutout animation he was doing for Cauger. Walt eventually decided to open his own animation business, and recruited a fellow co-worker at the Kansas City Film Ad Company, Fred Harman, as his first employee. Walt and Harman then secured a deal with local theater owner Frank L. Newman, arguably the most popular "showman" in the Kansas City area at the time, to screen their cartoons at his local theater, which they titled ''Laugh-O-Grams''.

Laugh-O-Gram Studio

Presented as "Newman Laugh-O-Grams", Disney's cartoons became widely popular in the Kansas City area and through their success, he was able to acquire his own studio, also called Laugh-O-Gram, for which he hired a vast number of additional animators, including Fred Harman's brother Hugh Harman, Rudolf Ising, and his close friend Ubbe Iwerks. Unfortunately, studio profits were insufficient to cover the high salaries paid to employees. Unable to successfully manage money, Disney's studio became loaded with debt and wound up bankrupt whereupon he decided to set up a studio in the movie industry's capital city, Hollywood, California.

Hollywood

Disney and his brother Roy pooled their money and set up a cartoon studio in Hollywood where they needed to find a distributor for Walt's new Alice Comedies, which he had started making while in Kansas City but never got to distribute. Disney sent an unfinished print to New York distributor Margaret Winkler, who promptly wrote back to him that she was keen on a distribution deal for more live-action/animated shorts based upon ''Alice's Wonderland''.

Alice Comedies

Virginia Davis, the live-action star of ''Alice’s Wonderland'' and her family relocated from Kansas City to Hollywood at Disney's request, as did Iwerks and his family. This was the beginning of the Disney Brothers' Studio located on Hyperion Avenue in the Silver Lake district, where it remained until 1939. In 1925, Disney hired a young woman named Lillian Bounds to ink and paint celluloid. After a brief courtship, the pair married that same year.

The new series, ''Alice Comedies'', proved reasonably successful, and featured both Dawn O'Day and Margie Gay as Alice with Lois Hardwick also briefly assuming the role. By the time the series ended in 1927, its focus was more on the animated characters and in particular a cat named Julius who resembled Felix the Cat, rather than the live-action Alice.

Oswald the Lucky Rabbit

By 1927, Charles Mintz had married Margaret Winkler and assumed control of her business. He then ordered a new all-animated series to be put into production for distribution through Universal Pictures. The new series, ''Oswald the Lucky Rabbit'', was an almost instant success, and the character, Oswald — drawn and created by Iwerks — became a popular figure. The Disney studio expanded and Walt re-hired Harman, Rudolph Ising, Carman Maxwell, and Friz Freleng from Kansas City.

Disney went to New York in February 1928 to negotiate a higher fee per short and was shocked when Mintz told him that not only did he want to reduce the fee he paid Disney per short but also that he had most of his main animators, including Harman, Ising, Maxwell, and Freleng—but not Iwerks, who refused to leave Disney—under contract and would start his own studio if Disney did not accept the reduced production budgets. Universal, not Disney, owned the Oswald trademark, and could make the films without Walt. Disney declined Mintz's offer and as a result lost most of his animation staff whereupon he found himself on his own again.

It subsequently took his company 78 years to get back the rights to the Oswald character when in 2006 the Walt Disney Company reacquired the rights to Oswald the Lucky Rabbit from NBC Universal, through a trade for longtime ABC sports commentator Al Michaels.

Mickey Mouse

After losing the rights to Oswald, Disney felt the need to develop a new character to replace him, which was based on a mouse he had adopted as a pet while working in his Laugh-O-Gram studio in Kansas City. Ub Iwerks reworked the sketches made by Disney to make the character easier to animate although Mickey's voice and personality were provided by Disney himself until 1947. In the words of one Disney employee, "Ub designed Mickey's physical appearance, but Walt gave him his soul." Besides Oswald and Mickey, a similar mouse-character is seen in the ''Alice Comedies'', which featured "Ike the Mouse". Moreover, the first Flip the Frog cartoon called Fiddlesticks showed a Mickey Mouse look-alike playing fiddle. The initial films were animated by Iwerks with his name prominently featured on the title cards. Originally named "Mortimer", the mouse was later re-christened "Mickey" by Lillian Disney who thought that the name Mortimer did not fit. Mortimer later became the name of Mickey's rival for Minnie – taller than his renowned adversary and speaking with a Brooklyn accent.

The first animated short to feature Mickey, ''Plane Crazy'' was a silent film like all of Disney's previous works. After failing to find a distributor for the short and its follow-up, ''The Gallopin' Gaucho'', Disney created a Mickey cartoon with sound entitled ''Steamboat Willie''. A businessman named Pat Powers provided Disney with both distribution and Cinephone, a sound-synchronization process. ''Steamboat Willie'' became an instant success, and ''Plane Crazy'', ''The Galloping Gaucho'', and all future Mickey cartoons were released with soundtracks. After the release of ''Steamboat Willie'', Disney successfully used sound in all of his subsequent cartoons, and Cinephone also became the new distributor for Disney's early sound cartoons. Mickey soon eclipsed Felix the Cat as the world's most popular cartoon character and by 1930, despite their having sound, cartoons featuring Felix had faded from the screen after failing to gain attention. Mickey's popularity would subsequently skyrocket in the early 1930s.

''Silly Symphonies''

Following in the footsteps of ''Mickey Mouse series'', a series of musical shorts titled, ''Silly Symphonies'' were released in 1929. The first, ''The Skeleton Dance'' was entirely drawn and animated by Iwerks, who was also responsible for drawing the majority of cartoons released by Disney in 1928 and 1929. Although both series were successful, the Disney studio was not receiving its rightful share of profits from Pat Powers, and in 1930, Disney signed a new distribution deal with Columbia Pictures. The original basis of the cartoons was their musical novelty with the first Silly Symphony cartoons featuring scores by Carl Stalling.

Iwerks was soon lured by Powers into opening his own studio with an exclusive contract, while Stalling would also later leave Disney to join Iwerks. Iwerks launched his ''Flip the Frog'' series with the first voiced color cartoon ''Fiddlesticks'', filmed in two-strip Technicolor. Iwerks also created two other cartoon series, ''Willie Whopper'' and the ''Comicolor''. In 1936, Iwerks shut down his studio in order to work on various projects dealing with animation technology. He would return to Disney in 1940 and go on to pioneer a number of film processes and specialized animation technologies in the studio's research and development department.

By 1932, although Mickey Mouse had become a relatively popular cinema character, ''Silly Symphonies'' was not as successful. The same year also saw competition increase as Max Fleischer's flapper cartoon character, Betty Boop, gained popularity among theater audiences. Fleischer, considered Disney's main rival in the 1930s, was also the father of Richard Fleischer, whom Disney would later hire to direct his 1954 film ''20,000 Leagues Under the Sea''. Meanwhile, Columbia Pictures dropped the distribution of Disney cartoons to be replaced by United Artists. In late 1932, Herbert Kalmus, who had just completed work on the first three-strip technicolor camera, approached Walt and convinced him to reshoot the black and white ''Flowers and Trees'' in three-strip Technicolor. ''Flowers and Trees'' would go on to be a phenomenal success and would also win the first 1932 Academy Award for Best Short Subject: Cartoons. After the release of ''Flowers and Trees'', all subsequent ''Silly Symphony'' cartoons were in color while Disney was also able to negotiate a two-year deal with Technicolor, giving him the sole right to use their three-strip process, a period eventually extended to five years. Through ''Silly Symphonies'', Disney also created his most successful cartoon short of all time, ''The Three Little Pigs'' (1933). The cartoon ran in theaters for many months, featuring the hit song that became the anthem of the Great Depression, "Who's Afraid of the Big Bad Wolf".

First Academy Award

In 1932, Disney received a special Academy Award for the creation of "Mickey Mouse", a series which switched to color in 1935 and soon launched spin-offs for supporting characters such as Donald Duck, Goofy, and Pluto. Pluto and Donald became standalone cartoons in 1937, with Goofy following in 1939. Of all Mickey's partners, Donald Duck, who first teamed up with Mickey in the 1934 cartoon, ''Orphan's Benefit'', was arguably the most popular, going on to become Disney's second most successful cartoon character of all time.

Children

The Disneys' first attempt at pregnancy ended when Lillian miscarried. She became pregnant again and gave birth to a daughter, Diane Marie Disney, on December 18, 1933. The Disneys adopted Sharon Mae Disney (December 31, 1936 – February 16, 1993).

1937–1941: Golden age of animation

"Disney's Folly": ''Snow White and the Seven Dwarfs''

[[Image:Walt Disney Snow white 1937 trailer screenshot (13).jpg|left|thumb|Walt Disney introduces each of the Seven Dwarfs in a scene from the original 1937 ''Snow White'' theatrical trailer.]]

Following the creation of two cartoon series, in 1934 Disney began planning a full-length feature. The following year, opinion polls showed that another cartoon series, ''Popeye the Sailor'', produced by Max Fleischer, was more popular than Mickey Mouse. Nevertheless, Disney was able to put Mickey back on top as well as increase his popularity by colorizing and partially redesigning the character to become what was considered his most appealing design to date. When the film industry learned of Disney's plans to produce an ''animated'' feature-length version of ''Snow White'', they were certain that the endeavor would destroy the Disney Studio and dubbed the project "Disney's Folly". Both Lillian and Roy tried to talk Disney out of the project, but he continued plans for the feature, employing Chouinard Art Institute professor Don Graham to start a training operation for the studio staff. Disney then used the ''Silly Symphonies'' as a platform for experiments in realistic human animation, distinctive character animation, special effects, and the use of specialized processes and apparatus such as the multiplane camera – a new technique first used by Disney in the 1937 ''Silly Symphonies'' short ''The Old Mill''.

All of this development and training was used to increase quality at the studio and to ensure that the feature film would match Disney's quality expectations. Entitled ''Snow White and the Seven Dwarfs'', the feature went into full production in 1934 and continued until mid-1937, when the studio ran out of money. To obtain the funding to complete ''Snow White'', Disney had to show a rough cut of the motion picture to loan officers at the Bank of America, who then gave the studio the money to finish the picture. The film premiered at the Carthay Circle Theater on December 21, 1937 and at its conclusion the audience gave ''Snow White and the Seven Dwarfs'' a standing ovation. ''Snow White'', the first animated feature in America made in Technicolor, was released in February 1938 under a new distribution deal with RKO Radio Pictures. RKO had been the distributor for Disney cartoons in 1936, after it closed down the Van Beuren Studios in exchange for distribution. The film became the most successful motion picture of 1938 and earned over $8 million on its initial release.

Golden age of animation

Following the success of ''Snow White'', for which Disney received one full-size, and seven miniature Oscar statuettes, he was able to build a new campus for the Walt Disney Studios in Burbank, which opened for business on December 24, 1939. ''Snow White'' was not only the peak of Disney's success, but also ushered in a period that would later be known as the Golden Age of Animation for the studio. Feature animation staff, having just completed ''Pinocchio'', continued work on ''Fantasia'' and ''Bambi'' as well as the early production stages of ''Alice in Wonderland'', ''Peter Pan'' and ''Wind in the Willows'' while the shorts staff carried on working on the ''Mickey Mouse'', ''Donald Duck'', ''Goofy'', and ''Pluto'' cartoon series, ending the ''Silly Symphonies'' at this time. Animator Fred Moore had redesigned Mickey Mouse in the late 1930s after Donald Duck overtook him in popularity among theater audiences.

''Pinocchio'' and ''Fantasia'' followed ''Snow White and the Seven Dwarfs'' into the movie theaters in 1940, but both proved financial disappointments. The inexpensive ''Dumbo'' was then planned as an income generator, but during production most of the animation staff went on strike, permanently straining relations between Disney and his artists.

1941–1945: World War II era

In 1941, the U.S. State Department sent Disney and a group of animators to South America as part of its Good Neighbor policy, at the same time guaranteeing financing for the resultant movie, ''Saludos Amigos''.

Shortly after the release of ''Dumbo'' in October 1941, the United States entered World War II. The U.S. Army contracted most of the Disney studio's facilities where the staff created training and instruction films for the military, home-front morale-boosting shorts such as ''Der Fuehrer's Face'' and the 1943 feature film ''Victory Through Air Power''. However, military films did not generate income, and the feature film ''Bambi'' underperformed on its release in April 1942. Disney successfully re-issued ''Snow White'' in 1944, establishing a seven-year re-release tradition for his features. In 1945, ''The Three Caballeros'' was the last animated feature released by the studio during the war.

In 1944, ''Encyclopædia Britannica'' publisher William Benton, entered into unsuccessful negotiations with Disney to make six to twelve educational films per annum. Disney was asked by the US Coordinator of Inter-American Affairs, Office of Inter-American Affairs (OIAA), to make an educational film about the Amazon Basin, which resulted in the 1944 animated short, ''The Amazon Awakens''.

1945–1955: Post-war period

Disney studios also created inexpensive package films, containing collections of cartoon shorts, and issued them to theaters during this period. These included ''Make Mine Music'' (1946), ''Melody Time'' (1948), ''Fun and Fancy Free'' (1947) and ''The Adventures of Ichabod and Mr. Toad'' (1949). The latter had only two sections, the first based on ''The Wind in the Willows'' by Kenneth Grahame, and the second on ''The Legend of Sleepy Hollow'' by Washington Irving. During this period, Disney also ventured into full-length dramatic films that mixed live action and animated scenes, including ''Song of the South'' and ''So Dear to My Heart''. After the war ended, Mickey's popularity would also fade.

By the late 1940s, the studio had recovered enough to continue production on the full-length features ''Alice in Wonderland'' and ''Peter Pan'', both of which had been shelved during the war years. Work also began on ''Cinderella'', which became Disney's most successful film since ''Snow White and the Seven Dwarfs''. In 1948 the studio also initiated a series of live-action nature films, titled ''True-Life Adventures'', with ''On Seal Island'' the first. Despite its resounding success with feature films, the studio's animation shorts were no longer as popular as they once were, with people paying more attention to Warner Bros. and their animation star Bugs Bunny. By 1942, Leon Schlesinger Productions, which produced the Warner Bros. cartoons, had become the country's most popular animation studio. However, while Bugs Bunny's popularity rose in the 1940s, so did Donald Duck's, a character who would replace Mickey Mouse as Disney's star character by 1949.

During the mid-1950s, Disney produced a number of educational films on the space program in collaboration with NASA rocket designer Wernher von Braun: ''Man in Space'' and ''Man and the Moon'' in 1955, and ''Mars and Beyond'' in 1957.

Testimony before Congress

Disney was a founding member of the anti-communist Motion Picture Alliance for the Preservation of American Ideals. In 1947, during the early years of the Cold War, Disney testified before the House Un-American Activities Committee (HUAC), where he branded Herbert Sorrell, David Hilberman and William Pomerance, former animators and labor union organizers, Communist agitators. All three men denied the allegations and Sorrell went on to testify before the HUAC in 1946 when insufficient evidence was found to link him to the Communist Party.

Disney also accused the Screen Actors Guild of being a Communist front, and charged that the 1941 strike was part of an organized Communist effort to gain influence in Hollywood.

1955–1966: Theme parks and beyond

Planning Disneyland

On a business trip to Chicago in the late-1940s, Disney drew sketches of his ideas for an amusement park where he envisioned his employees spending time with their children. The idea for a children's theme park came after a visit to Children's Fairyland in Oakland, California. This plan was originally intended to be built on a plot located across the street to the south of the studio. These original ideas developed into a concept for a larger enterprise that would become Disneyland. Disney spent five years developing Disneyland and created a new subsidiary company, WED Enterprises, to carry out planning and production of the park. A small group of Disney studio employees joined the Disneyland development project as engineers and planners, and were dubbed Imagineers.

As Disney explained one of his earliest plans to Herb Ryman, who created the first aerial drawing of Disneyland presented to the Bank of America during fund raising for the project, he said, "Herbie, I just want it to look like nothing else in the world. And it should be surrounded by a train." Entertaining his daughters and their friends in his backyard and taking them for rides on his Carolwood Pacific Railroad had inspired Disney to include a railroad in the plans for Disneyland.

Disneyland grand opening

Disneyland officially opened on July 18, 1955. On Sunday, July 17, 1955, Disneyland hosted a live TV preview, among the thousands of people in attendance were Ronald Reagan, Bob Cummings and Art Linkletter, who shared cohosting duties, as well as the mayor of Anaheim. Walt gave the following dedication day speech:

Carolwood Pacific Railroad

During 1949, Disney and his family moved to a new home on a large piece of land in the Holmby Hills district of Los Angeles, California. With the help of his friends Ward and Betty Kimball, who already had their own backyard railroad, Disney developed blueprints and immediately set to work on creating a miniature live steam railroad for his backyard. The name of the railroad, Carolwood Pacific Railroad, came from his home's location on Carolwood Drive. The railroad's half-mile long layout included a long trestle bridge, loops, overpasses, gradients, an elevated berm, and a tunnel underneath his wife's flowerbed. He named the miniature working steam locomotive built by Disney Studios engineer Roger E. Broggie ''Lilly Belle'' in his wife's honor and had his attorney draw up right-of-way papers giving the railroad a permanent, legal easement through the garden areas, which his wife dutifully signed; however, there is no evidence of the documents ever recorded as a restriction on the property's title.

Expansion into new areas

As Walt Disney Productions began work on Disneyland, it also began expanding its other entertainment operations. In 1950, ''Treasure Island'' became the studio's first all-live-action feature, soon followed by ''20,000 Leagues Under the Sea'' (in CinemaScope, 1954), ''Old Yeller'' (1957), ''The Shaggy Dog'' (1959), ''Pollyanna'' (1960), ''Swiss Family Robinson'' (1960), ''The Absent-Minded Professor'' (1961), and ''The Parent Trap'' (1961). The studio produced its first TV special, ''One Hour in Wonderland'', in 1950. Disney began hosting a weekly anthology series on ABC entitled ''Disneyland'', after the park, on which he aired clips of past Disney productions, gave tours of his studio, and familiarized the public with Disneyland as it was being constructed in Anaheim. The show also featured a Davy Crockett miniseries, which started the "Davy Crockett craze" among American youth, during which millions of coonskin caps and other Crockett memorabilia were sold across the country. In 1955, the studio's first daily television show, ''Mickey Mouse Club'' debuted and would continue in various incarnations into the 1990s.

As the studio expanded and diversified into other media, Disney devoted less of his attention to the animation department, entrusting most of its operations to his key animators, whom he dubbed the Nine Old Men. Although he was spending less time supervising the production of the animated films, he was always present at story meetings.. During Disney's lifetime, the animation department created the successful ''Lady and the Tramp'' ( the first animated film in CinemaScope) in 1955, ''Sleeping Beauty'' ( the first animated film in Super Technirama 70mm) in 1959, ''One Hundred and One Dalmatians'' (the first animated feature film to use Xerox cels) in 1961, and ''The Sword in the Stone'' in 1963.

Production of short cartoons kept pace until 1956, when Disney shut down the responsible division although special shorts projects would continue for the remainder of the studio's duration on an irregular basis. These productions were all distributed by Disney's new subsidiary, Buena Vista Distribution, which had taken over all distribution duties for Disney films from RKO by 1955. Disneyland, one of the world's first theme parks, finally opened on July 17, 1955, and was immediately successful. Visitors from around the world came to visit Disneyland, which contained attractions based on a number of successful Disney characters and films.

After 1955, the ''Disneyland'' TV show was renamed ''Walt Disney Presents''. It switched from black-and-white to color in 1961 and changed its name to ''Walt Disney's Wonderful World of Color'', at the same time moving from ABC to NBC, and eventually evolving into its current form as ''The Wonderful World of Disney''. The series continued to air on NBC until 1981, when it was picked up by CBS. Since then, it has aired on ABC, NBC, the Hallmark Channel and the Cartoon Network via separate broadcast rights deals. During its run, the Disney series offered some recurring characters, such as the newspaper reporter and sleuth "Gallegher" played by Roger Mobley with a plot based on the writings of Richard Harding Davis.

Disney had already formed his own music publishing division in 1949 and in 1956, partly inspired by the huge success of the television theme song The Ballad of Davy Crockett, he created a company-owned record production and distribution entity called Disneyland Records.

Early 1960s successes

By the early 1960s, the Disney empire had become a major success, and Walt Disney Productions had established itself as the world's leading producer of family entertainment. Walt Disney was the Head of Pageantry for the 1960 Winter Olympics.

After decades of pursuit, Disney finally acquired the rights to P.L. Travers' books about a magical nanny. ''Mary Poppins'', released in 1964, was the most successful Disney film of the 1960s and featured a memorable song score written by Disney favorites, the Sherman Brothers. The same year, Disney debuted a number of exhibits at the 1964 New York World's Fair, including Audio-Animatronic figures, all of which were later integrated into attractions at Disneyland and a new theme park project which was to be established on the East Coast.

Although the studio would probably have proved major competition for Hanna-Barbera, Disney decided not to enter the race and mimic Hanna-Barbera by producing Saturday morning TV cartoon series. With the expansion of Disney's empire and constant production of feature films, the financial burden involved in such a move would have proven too great.

Plans for Disney World and EPCOT

In early 1964, Disney announced plans to develop another theme park to be called Disney World a few miles west of Orlando, Florida. Disney World was to include "the Magic Kingdom", a larger, more elaborate version of Disneyland. It would also feature a number of golf courses and resort hotels. The heart of Disney World, however, was to be the Experimental Prototype City (or Community) of Tomorrow, known as EPCOT for short.

Mineral King Ski Resort

During the early to mid 1960s, Walt Disney developed plans for a ski resort in Mineral King, a glacial valley in California's Sierra Nevada mountain range. He brought in experts such as the renowned Olympic ski coach and ski-area designer Willy Schaeffler, who helped plan a visitor village, ski runs and ski lifts among the several bowls surrounding the valley. Plans finally moved into action in the mid 1960s, but Walt died before the actual work started. Disney's death and opposition from conservationists ensured that the resort was never built.

Death

In 1966, Disney was scheduled to undergo surgery to repair an old neck injury caused by many years of playing polo at the Riviera Club in Hollywood. On November 2, during pre-operative X-rays, doctors at Providence St. Joseph Medical Center, across the street from the Disney Studio, discovered a tumor in his left lung. Five days later a biopsy showed the tumor to be malignant and to have spread throughout the entire left lung. After removal of the lung, doctors informed Disney that his life expectancy was six months to two years. After several chemotherapy sessions, Disney and his wife spent a short amount of time in Palm Springs, California. On November 30, Disney collapsed at his home. He was revived by fire department personnel and rushed to St. Joseph's where on December 15, 1966, at 9:30 a.m., ten days after his 65th birthday, Disney died of acute circulatory collapse, caused by lung cancer. The last thing he reportedly wrote before his death was the name of actor Kurt Russell, the significance of which remains a mystery, even to Russell.

Disney was cremated on December 17, 1966, and his ashes interred at the Forest Lawn Memorial Park in Glendale, California. Roy O. Disney continued out with the Florida project, insisting that the name be changed to Walt Disney World in honor of his brother.

The final productions in which Disney played an active role were the animated features ''The Jungle Book'' and ''Winnie the Pooh and the Blustery Day'', as well as the live-action musical comedy ''The Happiest Millionaire'', both released in 1967. Songwriter Robert B. Sherman recalled of the last time he saw Disney: }}

A long-standing urban legend maintains that Disney was cryogenically frozen, and his frozen corpse stored beneath the Pirates of the Caribbean ride at Disneyland. However, the first known cryogenic freezing of a human corpse did not occur until January 1967, more than a month after his death.

Legacy: 1967–present

Continuing Disney Productions

After Walt Disney's death, Roy Disney returned from retirement to take full control of Walt Disney Productions and WED Enterprises. In October 1971, the families of Walt and Roy met in front of Cinderella Castle at the Magic Kingdom to officially open the Walt Disney World Resort.

After giving his dedication for Walt Disney World, Roy asked Lillian Disney to join him. As the orchestra played "When You Wish Upon a Star", she stepped up to the podium accompanied by Mickey Mouse. He then said, "Lilly, you knew all of Walt's ideas and hopes as well as anybody; what would Walt think of it [Walt Disney World]?". "I think Walt would have approved," she replied. Roy died from a cerebral hemorrhage on December 20, 1971, the day he was due to open the Disneyland Christmas parade. During the second phase of the "Walt Disney World" theme park, EPCOT was translated by Disney's successors into EPCOT Center, which opened in 1982. As it currently exists, EPCOT is essentially a living world's fair, different from the actual functional city that Disney had envisioned. In 1992, Walt Disney Imagineering took the step closer to Disney's original ideas and dedicated Celebration, Florida, a town built by the Walt Disney Company adjacent to Walt Disney World, that hearkens back to the spirit of EPCOT. EPCOT was also originally intended to be devoid of Disney characters which initially limited the appeal of the park to young children. However, the company later changed this policy and Disney characters can now be found throughout the park, often dressed in costumes reflecting the different pavilions.

The Disney entertainment empire

Today, Walt Disney's animation/motion picture studios and theme parks have developed into a multi-billion dollar television, motion picture, vacation destination and media corporation that carry his name. Among other assets The Walt Disney Company owns five vacation resorts, eleven theme parks, two water parks, thirty-nine hotels, eight motion picture studios, six record labels, eleven cable television networks, and one terrestrial television network. As of 2007, the company had annual revenues of over U.S. $35 billion.

Disney Animation

Walt Disney was a pioneer in character animation. He was one of the first people to move away from basic cartoons with just ''"impossible outlandish gags"'' and crudely drawn characters to an art form with heartwarming stories and characters the audience can connect to on an emotional level. The personality displayed in the characters of his films and the technological advancements remain influential when animating today. He was also considered by many of his colleagues to be a master storyteller and the animation department did not fully recover from his demise until the late 1980's in a period known as the Disney Renaissance. The most finacially and critically successful films produced during this time include Who Framed Roger Rabbit (1988), The Little Mermaid (1989), Beauty and the Beast (1991), Aladdin (1992) and The Lion King (1994). In 1995 Walt Disney Pictures distributed Pixar's Toy Story, the first computer animated feature film. Walt Disney's nephew Roy E. Disney claimed that Walt would have loved ''Toy Story'' and that it was ''"his kind of movie"'' . With the rise of computer animated films a stream of financially unsuccessful Traditional hand-drawn animated features in the early 2000s emerged. This led to the company's controversial decision to close the traditional animation department. The two satellite studios in Paris and Orlando were closed, and the main studio in Burbank was converted to a computer animation production facility, firing hundreds of people in the process. In 2004, Disney released what was announced as their final "traditionally animated" feature film, ''Home on the Range''. However, since the 2006 acquisition of Pixar, and the resulting rise of John Lasseter to Chief Creative Officer, that position has changed with the largely successful 2009 film ''The Princess and the Frog''. This marked Disney's return to traditional hand-drawn animation and the studio hired back staff who had been laid-off in the past. Today Disney produces both traditional and computer animation.

CalArts

In his later years, Disney devoted substantial time to funding The California Institute of the Arts (CalArts). Formed in 1961 through a merger of the Los Angeles Conservatory of Music and the Chouinard Art Institute, which had helped in the training of the animation staff during the 1930s, when Disney died, one-fourth of his estate went to CalArts, which helped in building its campus. In his will, Disney paved the way for the creation of several charitable trusts which included one for the California Institute of the Arts and other for the Disney Foundation. He also donated of the Golden Oaks ranch in Valencia for construction of the school. CalArts moved onto the Valencia campus in 1972.

In an early admissions bulletin, Disney explained: }}

Walt Disney Family Museum

In 2009, the Walt Disney Family Museum opened in the Presidio of San Francisco. Thousands of artifacts from Disney's life and career are on display, including 248 awards that he received.

Anti-Semitism accusations

Disney was long rumored to be anti-Semitic during his lifetime, and such rumors have persisted after his death. Disney biographer Neal Gabler, the first writer to gain unrestricted access to the Disney archives, concluded in 2006 that available evidence does not support such accusations. In a CBS interview Gabler summarized his findings: }} Disney eventually distanced himself from the Motion Picture Alliance in the 1950s.

The Walt Disney Family Museum acknowledges that Disney did have "difficult relationships" with some Jewish individuals, and that ethnic stereotypes common to films of the 1930s were included in some early cartoons, such as ''Three Little Pigs''. However, the museum points out that Disney employed Jews throughout his career and was named "1955 Man Of The Year" by the B'nai B'rith chapter in Beverly Hills.

Academy Awards

Walt Disney holds the record for both the most Academy Award nominations (59) and the number of Oscars awarded (22). He also earned four honorary Oscars while his last competitive Academy Award was posthumous.

1932: Best Short Subject, Cartoons for: Flowers and Trees (1932)

1932: Honorary Award for: creation of Mickey Mouse.

1934: Best Short Subject, Cartoons for: Three Little Pigs (1933)

1935: Best Short Subject, Cartoons for: The Tortoise and the Hare (1934)

1936: Best Short Subject, Cartoons for: Three Orphan Kittens (1935)

1937: Best Short Subject, Cartoons for: The Country Cousin (1936)

1938: Best Short Subject, Cartoons for: The Old Mill (1937)

1939: Best Short Subject, Cartoons for: Ferdinand the Bull (1938)

1939: Honorary Award for ''Snow White and the Seven Dwarfs'' (1937) The citation read: ''"For Snow White and the Seven Dwarfs, recognized as a significant screen innovation which has charmed millions and pioneered a great new entertainment field"'' (the award was one statuette and seven miniature statuettes)

1940: Best Short Subject, Cartoons for: Ugly Duckling (1939)

1941: Honorary Award for: Fantasia (1940), shared with: William E. Garity and J.N.A. Hawkins. The citation for the certificate of merit read: ''"For their outstanding contribution to the advancement of the use of sound in motion pictures through the production of ''Fantasia''"''

1942: Best Short Subject, Cartoons for: Lend a Paw (1941)

1943: Best Short Subject, Cartoons for: Der Fuehrer's Face (1942)

1949: Best Short Subject, Two-reel for: Seal Island (1948)

1949: Irving G. Thalberg Memorial Award (Honorary Award)

1951: Best Short Subject, Two-reel for: Beaver Valley (1950)

1952: Best Short Subject, Two-reel for: Nature's Half Acre (1951)

1953: Best Short Subject, Two-reel for: Water Birds (1952)

1954: Best Documentary, Features for: The Living Desert (1953)

1954: Best Documentary, Short Subjects for: The Alaskan Eskimo (1953)

1954: Best Short Subject, Cartoons for: Toot Whistle Plunk and Boom (1953)

1954: Best Short Subject, Two-reel for: Bear Country (1953)

1955: Best Documentary, Features for: The Vanishing Prairie (1954)

1956: Best Documentary, Short Subjects for: Men Against the Arctic

1959: Best Short Subject, Live Action Subjects for: Grand Canyon

1969: Best Short Subject, Cartoons for: Winnie the Pooh and the Blustery Day

Other honors

Walt Disney was the inaugural recipient of a star on the Anaheim walk of stars awarded in recognition of his significant contribution to the city of Anaheim and specifically Disneyland, which is now the Disneyland Resort. The star is located at the pedestrian entrance to the Disneyland Resort on Harbor Boulevard. Disney has two stars on the Hollywood Walk of Fame, one for motion pictures and the other for his television work.

Walt Disney received the Congressional Gold Medal on May 24, 1968 (P.L. 90-316, 82 Stat. 130–131) and the Légion d'Honneur awarded by France in 1935. In 1935, Walt received a special medal from the League of Nations for creation of Mickey Mouse, held to be Mickey Mouse award. He also received the Presidential Medal of Freedom on September 14, 1964. On December 6, 2006, California Governor Arnold Schwarzenegger and First Lady Maria Shriver inducted Walt Disney into the California Hall of Fame located at The California Museum for History, Women, and the Arts.

A minor planet, 4017 Disneya, discovered in 1980 by Soviet astronomer Lyudmila Georgievna Karachkina, is named after him.

The Walt Disney Concert Hall in Los Angeles, California, opened in 2003, was named in his honor.

In 1993, HBO began development of a Walt Disney biopic directed by Frank Pierson and featuring Lawrence Turman but the project never materialized and was soon abandoned. However, ''Walt - The Man Behind the Myth'', a biographical documentary about Disney, was later made.

See also

Disney family

The Mickey Mouse Club

The Walt Disney Family Museum

Walt Disney anthology television series

Notes

References

Further reading

Barrier, Michael (1999). ''Hollywood Cartoons: American Animation in Its Golden Age''. Oxford: Oxford University Press. ISBN 0-19-516729-5.

Broggie, Michael (1997, 1998, 2005). ''Walt Disney's Railroad Story''. Virginia Beach, Virginia. Donning Publishers. ISBN 1-56342-009-0

Eliot, Marc (1993). ''Walt Disney: Hollywood's Dark Prince''. Carol. ISBN 1-55972-174-X

Mosley, Leonard. ''Disney's World: A Biography'' (1985, 2002). Chelsea, MI: Scarborough House. ISBN 0-8128-8514-7.

Gabler, Neal. ''Walt Disney: The Triumph of American Imagination'' (2006). New York, NY. Random House. ISBN 0-679-43822-X

Schickel, Richard, and Dee, Ivan R. (1967, 1985, 1997). ''The Disney Version: The Life, Times, Art and Commerce of Walt Disney''. Chicago: Ivan R. Dee, Publisher. ISBN 1-56663-158-0.

Sherman, Robert B. and Sherman, Richard M. (1998) "Walt's Time: From Before to Beyond" ISBN 0-9646059-3-7

Watts, Steven, ''The Magic Kingdom: Walt Disney and the American Way of Life'', University of Missouri Press, 2001, ISBN 0826213790

External links

Discusses Walt Disney's attitude towards unions and communism.

Walt Disney Family Museum

Neal Gabler, Inside Walt Disney

Interview with Robert Stack About Walt Disney's Involvement in Polo

Walt Disney Gravesite

Disney's Fantastic Voyage

History of Walt Disney

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A financial adviser or financial advisor, is a professional who renders financial services to individuals, businesses and governments. This can involve investment advice, which may include pension planning, and/or advice on life insurance and other insurances such as income protection insurance, critical illness insurance etc., and/or advice on mortgages.

Ideally, the financial advisor helps the client maintain the desired balance of investment income, capital gains, and acceptable level of risk by using proper asset allocation. Financial advisers use stock, bonds, mutual funds, real estate investment trusts (REITs), options, futures, notes, and insurance products to meet the needs of their clients. Many financial advisers receive a commission payment for the various financial products that they broker, although "fee-based" planning is becoming increasingly popular in the financial services industry.

A further distinction should be made between "fee-based" and "fee-only" advisers. Fee-based advisers often charge asset based fees but may also collect commissions. Fee-only advisers do not collect commissions or referral fees paid by other product or service providers.

Some investment advisors only charge a fee based on the assets managed for the client. Typically they charge about 1.0 to 1.5% per year to make the investment decisions for the client. They do not collect commissions.

Financial Adviser is also the name of a weekly trade newspaper for independent financial advisers in the UK. Owned by The Financial Times, its editorial offices are in London.

Role

The main purpose of a financial adviser is to assist clients in the planning and arrangement of their financial affairs, such as savings, retirement provisions, tax treatment and wills. To ensure ethical practices, financial advisers must understand a client's financial situation as well as their need for financial stability. Finance can be complicated and any adviser has responsibilities ethically to see that a client's risk is minimized, and monetarily, that money is maximized within the established risk boundaries.

Retirement planning

One of the major services that financial advisers offer is retirement planning. A financial adviser should have knowledge of budgeting, forecasting, taxation, asset allocation, and financial tools and products to establish realistic goals and the strategy by which to reach them. In the United States, this will include the use of several investment tools such as 401(k)/403(b) Roth account(s), Individual Retirement Accounts/Roth IRAs, mutual funds, stocks, bonds and CDs.

The financial adviser determines what percentage of the available income is necessary—taking into account tax liabilities, expected inflation, and projected return on investment—to meet a minimum balance by the client's target age of retirement. This is a fairly straightforward calculation, and many automated tools do this. The financial adviser's greatest contribution is asset allocation: determining how to maximize the return on investment while satisfying the client's risk tolerance.

Investing

Financial advisers may help their clients invest for both long and short term goals. It is the financial adviser's duty to determine the clients' goals and risk tolerance and then to recommend appropriate investments. Generally, a long time horizon allows for the advisor to recommend more volatile investments with potentially greater risks and rewards. Such investments include direct investment in stocks or through collective investment products such as mutual funds and unit investment trusts/unit trusts.

If the client has shorter term goals, the adviser should recommend less volatile investments with shorter time spans. Such investments could include cash deposits, certificates of deposit, and short term bonds. While these types of investment generally have lower returns there is less volatility and there is less likelihood of losing principal capital. Although short-term investments can guard against loss of capital, their value can be eroded by inflation over longer periods of time.

Compensation

Fee-only

As defined by the review materials for the Certified Financial Planner exam and the National Association of Personal Financial Advisors, fee-only financial advisors, such as an investment advisor, are compensated solely by the client, typically achieved through a combination of hourly fees (including retainers), financial planning fees, and asset management fees. Neither advisors nor affiliates may receive commissions, rebates, awards, finder’s fees, bonuses or other forms of compensation from others as a result of a client’s implementation of the individual’s planning recommendations. The fee-only model of compensation reduces the potential for conflicts of interest between the advisor and the client in that the advisor is not beholden to insurance companies, particular investments, and other financial companies.

A clear distinction should be made between brokers, who often refer to themselves as "fee-based" (receiving both fees and commissions) and "fee-only" (someone who never receives compensation or incentives from a third party.)

A fee-only advisor may reduce conflicts of interest such as:

advising a client to buy products and make investments when holding cash and other liquid assets may have been a more suitable recommendation at that time.

an incentive to generate commissions through the unnecessary buying and/or selling of securities (also known as churning).

an incentive to convert non-cash assets such as real estate and collectibles to cash and securities so that the advisor can generate a commission.

an incentive to make recommendations that pay higher sales commissions to the advisor when a less expensive alternative may have been available.

Commission-based

Many financial advisers receive a commission payment for the various financial products that they broker, although "fee-based" planning is becoming increasingly popular in the financial services industry.

Online-only

A new class of services that deliver guidance regarding financial planning are emerging, offering low cost financial advice through the sponsorship of HR department of employers. Companies like HelloWallet are offering low cost financial advice through the employer. These services are also delivered to the poor through donation of HelloWallet as well as philanthropic organizations.

History

Much of today's model for what a financial advisor is stemmed from IDS Financial Services, which later became known as American Express Financial Corporation (AEFC) after the company was sold by Alleghany Corporation, and later became Ameriprise. At IDS, a young rep named James Tausz was a top-ranked broker and served as the basis of inspiration for the company's model of "Financial Planning for a Fee," which IDS VP Vint Lewis popularized by training thousands of IDS stock brokers. Today, the concept of a "Financial Advisor" is widely popular. Before the IDS model, almost all stock brokers worked on commissions only.

Qualifications

United States

There are three types of licenses for individual professionals who typically hold themselves out as Financial advisors: Investment Advisor Representative, Registered Representative (also known as a "Stock Broker"), Insurance Producer. The practice of investment advice, the sale of investment securities and the sale of insurance products are regulated and therefore an individual must pass an exam, affiliate with a firm and register with one or more states before conducting business. A Financial advisor may hold any combination of these licenses depending on the nature of their financial practice. Similar to the term Financial advisor, the terms wealth manager, financial consultant and financial planner do not refer to a specific license or designation. These terms are typically select by individuals to help describe the nature of their financial practice.

The Chartered Financial Analyst (CFA) designation, the Certified Financial Planner (CFP) designation, the Chartered Life Underwriter (CLU), The Chartered Financial Consultant (ChFC), Chartered Retirement Planning Counselor (CRPC), Registered Financial Consultant (RFC) and the Masters of Science in Financial Services (MSFS) are all advanced specializations that require elaborate course work to obtain. These professional designations are issued by organizations such as the Chartered Financial Analyst Institute, the Certified Financial Planner Board of Standards, and the College for Financial Planning.

In the United States, a firm registers as an investment advisor with the Security and Exchange Commission (SEC) or a state, depending on the amount of assets that receive continuous and regular supervisory or management services (Assets Under Management, or "AUM"). For a firm to register with the SEC, it must have over $25 million of AUM at the time of registration or within 120 days of the effective date of the registration. If a firm has less than $25 million of AUM and doesn’t anticipate having $25 million or more within 120 days of the effective date of the registration, then it must register with the individual state(s) as an investment advisor. If a firm has $30 million or more of AUM, then it must register with the SEC. Firms with more than $25 million and less than $30 million of AUM can be registered with either the state or SEC. The SEC’s definition of AUM is outlined in the Form ADV Part 1 and should be thoroughly reviewed and consulted prior to beginning the registration process.

Certain multi-state advisors may also register with the SEC, as well as certain Internet based advisors. If an advisor does not qualify for registration with the SEC, the adviser must register with the states where it maintains an office, as well as each state where its clients are located. There are de minimus exemptions in most states, typically exempting from registration those advisors with less than 6 clients, but the exemption varies from state to state.

Common examples of investment advisors include pension fund managers, mutual fund managers, trust fund managers and also individuals, partnerships, or corporations that have registered under the Act, and those who fall within certain exemptions. Stock brokers (known as "registered representatives" under U.S. federal law and licensed in the various states) are not necessarily (and normally are not) Registered Investment Advisors.

In general, under U.S. law, investment advisors owe their clients an ongoing fiduciary duty to provide full and complete disclosure of all fees, conflicts of interest, and if so authorized, to exercise discretion in selecting investments with only their clients' best interests in mind.

In many cases, a Registered Investment Advisor (RIA) is a corporation or partnership while the person actually providing the advice is an investment advisor representative (IAR) of the advisor organization. Investment advisor representatives and individuals registered as investment advisors are sometimes certified as a Certified Financial Planner (CFP) practitioner by the Certified Financial Planner Board of Standards, Inc. or a Chartered Financial Analyst(CFA) holding a charter from the CFA Institute after they have passed the appropriate examinations, have agreed to abide by a code of ethics, and have maintained the required continuing education credits. The CFP and CFA credentials are not, however, required for registration as a Registered Investment Advisor.

The registration process to become an investment advisor is becoming increasingly complex, with examination requirements, books and record retention and increased state regulation of smaller investment advisors.

Regulation

In the United States, the Financial Industry Regulatory Authority (FINRA) regulates and oversees the activities of more than 5,050 brokerage firms, approximately 172,050 branch offices and more than 663,050 registered securities representatives. A financial adviser or stock broker should be licensed to provide any consultation on investment in securities. Typical licenses needed to promote the sale of stocks are the: Series 7 (General Securities exam), Series 63 (State Securities exam), and Series 65 or 66 Uniform Investment Adviser Law Exam. Generally, any adviser who charges a fee for investment advice would need to also have the Series 65 or 66 license. Thus, anyone can call themselves a financial planner (although care must be taken not to be confused with a Certified Financial Planner), but they would still need FINRA licenses to provide advice for a fee or be registered as an investment adviser with the Securities and Exchange Commission in the USA. Anyone in the business of providing financial advice can call themselves a Financial Advisor. There currently isn't any regulation on the use of this title. To charge a fee for advice, one must pass the FINRA Series 65 test—The Uniform Investment Adviser Law Examination. To be a "Registered Investment Adviser" (RIA) or "Investment Adviser Representative" (IAR), one must pass the FINRA Series 65 exam or both of the FINRA Series 7 and Series 66 exams. Many brokerage firms still claim an exemption for their employees who sell fee based products and services.

Canada

The financial advisor role in Canada is varied. Most financial advisors carry either a life insurance license or a securities license. The life insurance license is obtained through successful completion of the life license qualification program, except in Quebec, where licensing is completed through l'autorite des marchiers financiers. There are three distinct securities licenses available. Completion of the Canadian Securities Course allows the sale of most types of securities, including stocks, bonds, and mutual funds. More advanced licensing is required for the sale of derivatives and commodities. Completion of a mutual funds course allows the advisor to sell mutual funds only, excluding certain types of very specialized funds. The third possible license is the exempt securities license.

In all cases, licensing requires the support of a dealer or insurer. It is also mandatory for advisors to carry Errors and Omissions Insurance. Technically, the term financial advisor refers to a securities licensed individual who provides investment advice to retail clients. However, there is little regulatory control exercised over use of the term, and, as such, many insurance brokers, insurance agents, securities brokers, and others identify themselves as financial advisors.

Many financial advisors in Canada are also financial planners. While there are numerous financial planning designations, the most common is the Certified Financial Planner designation. There is no regulation, outside of Quebec, of the term "Financial Planner".

United Kingdom

There are three main bodies awarding qualifications for financial advisers in the UK. The main one is the Chartered Insurance Institute, which offers professional financial services qualifications all the way from beginner to degree levels. The IFS School of Finance offers alternative courses/qualifications in certain specialist areas such as mortgages and equity release. The Institute of Financial Planning offers the Certified Financial Planner.

In the United Kingdom investment advice is given either by a financial advisor or a stock broker.

Financial advisors need to pass an exam and receive a Certificate in Financial Planning (previously the Financial Planning Certificate) or the Certificate for Financial Advisers, and also authorised by the Financial Services Authority, a UK government qango that must be satisfied the advisor is a “fit and proper person” before they may practice.

Financial advisors are either tied, multi-tied, independent, or fee-only.

As the classifications suggest, tied advisors can only recommend 'financial products' marketed by the company they represent. Typically that company employs them but in some cases they work for that organisation under a type of self-employed contract that usually precludes other paid work.

Multi-tied agents perform a similar role, except they represent a number of different companies. This is sometimes referred to as the panel system. Tied and multi-tied advisors are nearly always rewarded via commission, though in some cases (and if the advisor is employed rather than self employed) commission may be expressed in notional terms to justify a salary.

An Independent Financial Adviser must offer advice on all 'financial products' on the market (which carry commission) and, in addition, must offer clients the choice of paying a fee for advice about a product or products, rather than being remunerated commission from the financial institution that is promoting the product.

A Fee-only financial adviser designs bespoke solutions, and often by investing directly removes marketing commissions and charges from the costs that clients would otherwise pay. Fee-only advisory firms tend to accept a professional duty of care.

In the UK there has been much debate in the media about the effectiveness of financial advisors, especially in situations where there is perceived bias toward 'financial products' that carry commission.

''Best advice'' is a concept which was never more than a heading in the FSA / PIA / NASDIM regulations (and is now withdrawn in favour of the 'appropriate' standard) and which refers to the general obligation under Contract Law (Agency) that a broker has to find the correct 'financial product' to match a client 'need'. A tied or multi-tied advisor must recommend the most appropriate financial product within their company, even if a more appropriate product is available in the market place. An Independent Financial Adviser must recommend an appropriate financial product in the market place, even if a better solution is available outside the universe of commission-paying 'financial products'.

In the UK many believe impartial advice can be obtained only by consulting an independent financial advisor. Others believe it can only be obtained by consulting an advisor that never accepts commission.

Republic of Ireland

The QFA ("qualified financial adviser") designation is awarded to those who pass the Professional Diploma in Financial Advice and agree to comply with the ongoing "continuous professional development" (CPD) requirements. It is the recognised benchmark designation for financial advisers working in retail financial services. The qualification, and attaching CPD programme, meets the "minimum competency requirements" (MCR) specified by the Financial Regulator, for advising on and selling five categories of retail financial products:

Savings, investments and pensions,

Housing loans and associated insurances,

Consumer credit and associated insurances,

Shares, bonds and other investment instruments, and,

Life assurance protection policies.

New Zealand

The National Certificate in Financial Services [Financial Advice] [Level 5] is currently being introduced in New Zealand. All Individuates and registered legal entities providing financial services must be registered as a RFSP( Registered Financial Service Provider ) Their Directors, retail and sales staff are required to gain the national certificate.

The New Zealand Qualifications Authority (NZQA) in conjunction with industry groups via the ETITO administers a qualifications frame work for the qualification. Registrations and examinations are conducted by the ETITO. All Financial Advisers are required to register with the ETITO by March 31, 2011

The Qualifications Framework consists of a core set of competencies sets, A B C followed by 2 electives covering specialist areas such as Insurance and Residential Property Lending. Certain NZQA approved qualifications such as an Accountancy degree may exempt student from competency set A NZQA approved training in the certificate is offered by the New Zealand Open Polytechnic as well as several other accredited organizations

See also

Collective investment schemes

Socially responsible investing

References

External links

10 Questions to Ask When Choosing a Financial Planner

AAFM American Academy of Financial Management

IAIA International Association of Investment Advisers

AIFA Association of Independent Financial Advisers - UK Trade body

FSA website Financial Services Authority (UK)

IAA Investment Adviser Association

NAIFA National Association of Insurance & Financial Advisors

SEC IA Search SEC Database of US Registered Investment Advisers

SECLaw.com Financial Advisor Legal Information Center

€FPA €uropean Financial Planning Association

Category:Finance Category:Investment Category:People in finance

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