What is a Fiduciary?
fi•du•ci•ar•y – A financial advisor held to a Fiduciary Standard
occupies a position of special trust and confidence when working
with a client. As a Fiduciary, the financial advisor is required
to act with undivided loyalty to the client. This includes
disclosure of how the financial advisor is to be compensated and
any corresponding conflicts of interest.
Federal and state law requires that Registered
Investment Advisors are held to a Fiduciary Standard. This law
requires that an advisor act solely in the best interest of the
client, even if that interest is in conflict with the advisor’s
financial interest. Investment Advisors must disclose any
conflict, or potential conflict, to the client prior to and
throughout a business engagement. Investment Advisors must adopt
a Code of Ethics and fully disclose how they are compensated.
Unfortunately, only a small proportion of “financial advisors”
are federally or state-registered Investment Advisors. Most
so-called financial advisors are considered “Broker-Dealers”
by the United States Securities and Exchange Commission (SEC).
They are held to a lower standard of diligence on behalf of
their clients. In fact, they are required by federal law to
act in the best interest of their employer, not in the best
interest of their clients.
It's Not Just Money, Inc. is a registered Investment
Advisor. Not only are we held to the fiduciary standard, we
whole heartedly embrace it!
To read more about what it means to be a fiduciary, click below.