A fiduciary is a professional entrusted to manage assets or wealth while putting the client’s best interest first at all times. Financial advisors who follow a fiduciary standard must disclose any conflict, or potential conflict, to their clients before and during the advisory engagement. Fiduciaries will also adopt a code of ethics and fully disclose how they are compensated.
Who is a Fiduciary
Registered Investment Advisors (RIAs), which is what my firm Modern Wealth is, are held to a fiduciary standard of care. By law, they must act solely in the best interest of their clients. To ensure your advisor or potential advisor is following a fiduciary standard, request to see their ADV (a form filed with the SEC) or ask if they will sign a fiduciary oath.
How To Find A Fiduciary
I am one and have built Modern Wealth to always be one! While there are many financial professionals who profess to have their clients’ best interests at heart, they still may have conflicts that impact their recommendations. The truth is, it’s still important for consumers to ask the right questions and ultimately do what is best for you and your situation.