Fiduciary Relationship

We put your interests first, every time.

As a Fiduciary we have a legal and ethical obligation to put the client’s interest first. Not all financial advisors are held to this high of a standard, and is often not clear which advisors work this way. In fact, many “broker/dealers” are held to what is called the Suitability Standard. 

The Suitability Standard for Financial Advisors

Suitability means only make recommendations that are consistent with the best interest of the underlying customer.  It means making sure transaction costs are not excessing or that a recommendation is not unsuitable for a client.  The suitability standard is often associated with broker-dealers.

Some of the nation’s largest investment firms have been held to this lower standard for decades. The standard, which requires only that investment advice be suitable to the client, has shown to produce conflicts of interest, primarily when considering fees. The DOL has explained that this alone is costing investors billions of dollars in hidden fees.

The Fiduciary Standard for Financial Advisors

The term “fiduciary” can be defined as an individual or entity that acts on behalf of someone or something else. In this role, the fiduciary must operate as if they are who they represent in an effort to make decisions that are in their best interest. In many cases, some laws surround the role of a fiduciary.

A fiduciary is a good word to hear when you’re searching for a financial advisor. An advisor who calls themselves a fiduciary seeks to minimize conflicts of interest, be transparent and live up to the trust placed in them. More specifically, fiduciary financial advisors must:

• Put their client’s best interests before their own, seeking the best prices and terms
• Act in good faith and provide all relevant facts to clients
• Avoid conflicts of interest and disclose any potential conflicts of interest to clients
• Do their best to ensure the advice they provide is accurate and thorough
• Avoid using a client’s assets to benefit themselves, such as purchasing securities for their own account before buying them for a client