What is the "Fiduicary Advantage"?
When it comes to money, your savings, your investments, your family’s protection, and your chances for success, most would agree that a prudent approach is absolutely the best approach. A logical process begins with identifying the “pros” and “cons” of services offered in the market place. As logical as this is, most miss two key elements to success.
- Find "conflict free" advice.
- Take advantage of a “fiduciary standard” using “fiduciary relationships”.
Apertum, as a registered investment advisor, adheres to a “fiduciary standard”. And since that standard requires disclosure of “conflicts of interest” we wrap these elements into one called the “fiduciary advantage”.
What is a “Fiduciary Standard”?
Registered investment advisors are held to a “fiduciary standard”. This conveys a special trust and responsibility where we “put you before us”. As a fiduciary, we take this very seriously and with great respect.
We believe that “conflicts of interest” are highly correlated to imprudent advice. Therefore, our highest priority is remaining “conflict free” when it comes to providing objective prudent advice to our clients.
Fiduciary Standard and the Financial Services Industry
Brokers, advisors and their firms are at war over the SEC’s efforts to set into law a common “fiduciary standard” that would help protect retail investors whether they get advice from a registered advisor or broker. This war is mostly over the changes brokers would have to make since registered investment advisors are already bound by standards.
So what’s the big deal?
At stake for brokers and insurance companies are their current business models. These proposed changes would redefine the ways broker’s market products and services by requiring them to disclose conflicts of interests. Can you image your broker telling you he receives higher commissions for one product verses another……or even sharing the real costs of commissions?
Really at stake is the fact brokers don’t want to accept “fiduciary duties” because of the legal consequences. They also know that these standards will begin to bring a transparency to the market place that indirectly will affect their profits.
Advisors, Brokers, and Broker/Advisors
As time progresses and standards are adopted the general public will see a greater distinction between those that give advice and those who sell products. However, the standard could create even more ambiguity for clients since so many current financial service professionals wear two hats, broker and advisor. Where does the advice quit…..and the selling begin,……or is it the other way around?
| 
