Investment Advice and the responsibilities of financial professionals acting as a “Fiduciary” has recently received wide-spread recognition with the promulgation of newly updated regulatory standards of care by the SEC Best Interest Regulations for the handling of client investment accounts. What is meant by the term Fiduciary? The meaning comes from the Latin word “fiducia”, meaning “trust,” which represents a higher standard of care of a person who has the power and obligation to act for another under circumstances which require total trust, good faith and honesty. As the term Fiduciary relates to investment advisory services, by a person or organization, who is held to a “fiduciary standard” that manages assets of another person on that person’s behalf, the rules and regulations require full transparency, and full disclose all relevant information related to risks and expenses and any potential conflicts of interest.
Do you feel your financial professional adequately explains and discloses all relevant facts related to an investment recommendation? What responsibilities does your financial professional have to place a client’s best interests before their own interests? If you cannot readily answer these questions you need to ask specific questions which a True North Financial Advisor can answer clearly and to your complete satisfaction.
An Investor’s Map To Chart Their Financial Destination
Why are investors hesitant about asking questions about their money? Is it because they do not want to embarrass their financial professional or maybe make someone feel uncomfortable about how they are compensated? It’s your money why not ask. Perhaps, you do not know what questions to ask. What are the duties and responsibilities that govern Fiduciary Investment Advisor Representatives?
The following questions will help you determine where your stand on many issues and whether a comprehensive review with a True North Financial Advisor might be advisable. Make sure to ask the following questions:
- How long have you been offering financial planning advice to clients?
- Do you have experience and expertise in providing financial advice on what topics?
- What financial planning designation(s) or certification(s) do you hold?
- Do you have a business affiliation with any company whose products or services you recommend?
- Is any of compensation based on selling financial or insurance products?
- Are you required under law to act as a fiduciary by always placing my interests first?
- What potential conflicts of interest that you have when recommending certain investment?
- Do you provide investment policy statements for investment portfolios?
- Does your firm provide performance reporting?
- How often are investment accounts monitored?
- How will you disclose any conflicts of interest prior to investments, are there any special cash payments or incentives that you receive?
- Do you provide a written client engagement agreement?
- Do you have client references that you can provide to me?
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For a satisfactory explanation of the reason why these are important questions to understand and have answered, ask a True North Financial Advisor.
Important Disclosures
True North Financial Advisor clients should understand, unless specifically engaged as a fee-based advisory client, the following:
- Through our broker dealer, Cambridge Investment Research, we receive commissions for investment transactions made in non-discretionary accounts.
- Through insurance companies we receive commissions for the sale of insurance-related products.
- True North Financial Advisors, face many of the same conflicts of interest as “commission- based financial professionals”, as described on this website.
Investors are encouraged to contact True North Financial Advisors for more details. To learn more about the Fiduciary Financial Advice provided by the financial professionals at True North Financial Advisors by calling 855-377-7526, to Set Your Own Course.
