You may have heard media reports about a new ﬁduciary rule for retirement accounts that President Trump has rescinded. Understandably, you may have questions about how this might impact to your 401k plan. The rule was designed to ensure recommendations made by ﬁnancial advisors to their clients regarding their 401k plan are always made in the best interests of the client without any conﬂicts of interest.
As a Registered Investment Advisor, we are already under the highest ﬁduciary standard – so enacting the rule or rescinding it doesn’t change our status. We have had this higher standard in place all along and will continue to do so. It’s always been part of our DNA.
We have been serving as a ﬁduciary all along:
A “ﬁduciary” who manages an investor’s assets has a legal and ethical obligation to put the investor’s interests ﬁrst. That means helping the investor make decisions in his or her best interests. This ﬁduciary standard has always been at the core of our ﬁrm’s mission to our clients.
Here’s how we will protect you and your investments:
• We always put your needs ﬁrst. We are committed to the highest professional and personal standards, and this commitment remains as strong as ever. Our sole focus is on your ﬁnancial needs and goals and how we can best help you pursue them.
• We always act in your best interests. We are committed to putting your needs and goals before those of our ﬁrm. We strive to avoid any conﬂicts of interest, and if they arise and are unavoidable, we disclose these to you immediately. We provide a high level of transparency around any fees or expenses associated with your accounts, so that you always know what you own and what you’re paying for it, so there are never any surprises.
• We are an independent and objective resource. As an independent ﬁrm, we provide you with objective, unbiased advice based solely on your needs and goals. We provide guidance that is truly objective, unencumbered by any potential conﬂicts of interest. We have no vested interest in promoting a particular product or service. Our only interest is that your ﬁnancial objectives are met.
UNDERSTANDING THE FIDUCIARY STANDARD
In ﬁnancial services, there have traditionally been two types of standards: the suitability standard and the ﬁduciary standard.
The suitability standard is deﬁned as determining whether an investment product or strategy is “suitable” for the investor based on his or her ﬁnancial objectives and risk comfort level. Many advisors operate under the suitability standard where the advisor simply determines whether a recommended product or strategy is suitable for the client.
The ﬁduciary standard is a higher level of responsibility for the advisor. The ﬁduciary standard goes beyond suitability and requires that any advice on products and strategies be provided in the best interests of the investor. The ﬁduciary standard of care requires that the advisor take into consideration whether the fees are reasonable, whether there are any conﬂicts of interest, and whether the investments are adequately diversiﬁed.
OUR COMMITMENT TO YOU
As your advisor, we adhere to the ﬁduciary standard, and we believe this model of disclosure and transparency is in your best interests. In our view, you deserve to have your needs put ﬁrst and the strategies and investment products we recommend should align according to those needs.
Our ﬁduciary standard mandates that every single recommendation we make must be based on your best interests, and there is no circumstance when we can place our interests above yours. By adhering to the ﬁduciary standard, we believe we can provide you with the highest standard of care for all your investment and retirement needs.
SAFEGUARDING YOUR FINANCIAL DREAMS
When it comes to managing your money, your ﬁnancial relationships should be built on a foundation of trust, integrity and transparency. Not all ﬁrms and advisors adhere to the same legal and regulatory standards.
We remain committed to earning and maintaining your trust through expert advice and eﬀective strategies custom tailored to your unique needs. We deﬁne our success by seeing you succeed in achieving your ﬁnancial goals. And our focus remains on serving your interests ﬁrst and foremost.
Printable Version: Printers 401k Fiduciary Standard