A fiduciary refers to a person or organization that acts on behalf of a client to manage their assets responsibly by prioritizing the client’s best interest over theirs. If we look a bit deeper, being a fiduciary equates to being honest & accountable, acting in good faith, making ethical decisions, and conducting oneself with integrity. As fiduciaries, advisors develop a special relationship with their clients and align their objectives accordingly. The fiduciary advisor should disclose any conflicts of interest and ensure that these conflicts do not affect their advice. They must also do their best to make sure all investment and financial planning advice is made using the most current information, which is why as a professional, we are never finished learning.
The fiduciary standard of care has become a gold standard within the financial services industry, and it has always been how we treated the client relationship. Acting as a fiduciary along with being a Certified Financial Planner sets the client up for an honest professional relationship over the long term.