Why Having a Fiduciary Process In Place Is Important

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I would argue that this is a great rule and I would love to have an advisor who would assure me that they are bound by it by acting in my best interest. If we look at the significance of being a fiduciary then it becomes clear how important this rule is for anyone who is looking for professional advice regarding financial matters. For example, these responsibilities include:

• Acting solely in the interest of clients and their beneficiaries and with the exclusive purpose of providing benefits to them;
• Carrying out their duties prudently;
• Following proper filing procedures;
• Recommending ‘suitable’ investments that meet risk/return expectations of the client;
• Clearly spelling out the compensation associate with the services provided.

Being a fiduciary can be a deciding factor in the minds of many people who will be looking for a financial advisor, since it would a sigh of relief to know that the person who you entrust your money with will be acting responsibly to protect your interest and investments. As a matter of fact, there are a lot of different size RIAs and broker-dealer firms who will continue to put together a compliance process shaped by the fiduciary rule to differentiate themselves from others and to appeal to people who are looking for the best advice.

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