fiduciary responsibility and why is it important?
Fiduciary means to hold a confidence or trust. A financial services industry professional who has a fiduciary responsibility to his or her clients must put a client's needs and interests ahead of his or her own. Certified Financial Planners have a fiduciary responsibility to their clients. While stockbrokers and insurance agents are regulated and licensed, they do not have a fiduciary responsibility to their clients. The recommendations they make must only meet the "suitability standard." In other words, the risk level of the product must be suitable for the client based on income, assets, risk tolerance or another standard that is specified in the prospectus. Advisors with a fiduciary responsibility are less likely to push products that earn them a quick buck.
David Treece is an Accredited Investment Fiduciary, which means he has a duty to always put a client’s interest first. Treece Financial Group follows a fiduciary process that includes a duty of utmost care, a duty of integrity, a duty of honesty and full disclosure, a duty of loyalty, and a duty of good faith. This is different from many people in the financial services industry who are really little more than salespeople. We don’t believe there is any reason for you to work with any investment advisor who doesn’t have a fiduciary responsibility to you.
Since 90% of financial advisors are considered brokers - without a fiduciary responsibility - many states are taking it upon themselves to create their own fiduciary rule. Find out if your advisor is a fiduciary and what their responsibility is to you.