What does it mean to be a “fiduciary”?
All investors should have access to advice that is in their best interests. The authentic fiduciary standard legally requires an investment adviser to act, under the Investment Adviser Act of 1940, completely in their clients’ best interest.
Those financial planners acting in a fiduciary capacity should adhere to the following standards:
Put the client’s best interests first
Act with prudence; that is, with skill, care diligence and good judgment of a professional
Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts
Avoid conflicts of interest; and
Fully disclose and fairly manage, in the client’s favor, unavoidable conflicts.
Source: The Committee for The Fiduciary Standard; www.thefiduciarystandard.org.