Frequently Asked Questions
Please click the questions below to discover the answers.
Are you a fiduciary and what is the difference?
In April 2016, a new word entered many investors' vocabularies: fiduciary. Even for those who'd heard it before, the term took on a whole new meaning when the Department of Labor's Fiduciary Rule was released. All of a sudden financial advisors fell into two camps: fiduciaries and non-fiduciaries, adding a new level of confusion – and risk – to the advisor-client relationship for many investors.
The most important difference between a fiduciary and a non-fiduciary is the decision-making process. Before making a recommendation, fiduciaries undergo a thorough process designed to determine the client’s best interest. They discuss each recommendation thoroughly to ensure there is no misunderstanding about the recommendation and the fiduciary’s role for making it.
Advisor’s acting under the non-fiduciary standard may, but are not required to, have the same depth of discussion.