The Fiduciary Standard
As Fiduciary Financial Advisors, Our Advice Is Objective and In Your Best Interest
A fiduciary is a person or institution given the power to act on behalf of another in situations that require great trust, honesty and loyalty. Fiduciaries are hired to act in your best interest and must set aside personal motives and conflicts of interest in favor of pursuing the best outcome for your unique situation.
There are very clear guidelines on who is considered a fiduciary in the financial world and who is not.
Fiduciaries Non Fiduciaries
RIA (Registered Investment Advisors) Stock Brokers
Attorneys Broker Dealers
Accountants Insurance Agents
Trustee of a Trust Salesmen
Fiduciary duty is a legal obligation of a fiduciary to act in the best interest of a client.
Many brokers and insurance agents call themselves “financial advisors” or “financial planners,” but they may not have a fiduciary duty and in fact may not be required to put your interests first. They represent themselves or their company. Rather than a legal responsibility to act in your best interest, they instead must only provide you with “suitable” financial products. This “suitability standard” is very broad and difficult to impose.
Fiduciary duty is stricter than the suitability standard. It is not enough for them to just provide "suitable" recommendations. They must provide you with the best advice possible.
Because fiduciaries are held to such a high standard of care, much of the informed public makes an effort to seek the advice of fiduciary financial planners. Ask your advisor if he or she is fiduciary and required to act in your best interest.
As an RIA we are held to the Fiduciary Standard. Contact us for a no-cost, no-obligation financial consultation and let us show you the difference.