Prior to the financial mess in 2008, the members of the Financial Planning Coalition began calling for a Fiduciary Standard for investment advisors and financial planners. This was met by major opposition from firms whose employees are commission based financial salesmen. The fiduciary standard would require these folks to act in the best interest of their clients at all times. Imagine that! Consumers deserve this basic protection.
Fiduciaries live up to a few simple standards:
- A client’s best interest is their first priority… By Federal Law.
- They seek the best investments and the best prices for their clients. When comparing equal investments, the one with the lowest fee is best for the client.
- Fiduciaries understand that they cannot control the market; instead they focus on providing impartial and unbiased consultative advice.
- Full disclosure of the fees they charge and the payments they accept. Consumers understand how their fiduciary advisor is paid. No hidden fees.
- Full disclosure of conflicts of interest. Consumers are fully aware of relationships that may benefit the advisor.