Fiduciary duty is the highest standard of care, highlighted by good faith, loyalty, trust and transparency. In an industry where conflicts of interest are prevalent, we chose a structure that would eliminate as many conflicts as possible. As a pure RIA, we have no affiliation with a broker / dealer: we only wear one hat and only act in one capacity – as a fiduciary. As fiduciaries we are always legally bound to act in our clients’ best interest.
According to the CFA Institute, “Currently, those who provide financial advice adhere to two standards of conduct:
(1) a fiduciary standard for “advisers” who are registered with the SEC under the Investment Advisers Act of 1940; and
(2) a suitability standard for brokers and others that refer to themselves as “advisory” in nature.
The suitability standard of care is lower than a fiduciary duty and requires only that the broker has a reasonable basis to believe a recommended course of action is suitable for the customer based on reasonable inquiry into the customer’s investment profile.” Shunning the suitability standard and embracing the fiduciary standard is the cornerstone of our structure.