Fiduciary Standard of Care
We offer our advisory services under the “fiduciary standard of care,” which means we are legally as well as ethically required to put your best interests first, to put loyalty to you first, and to disclose any potential conflicts of interest.
Insurance agents, brokers, and registered representatives, on the other hand, operate under a sales-based model where they are held to the "suitability standard of care." It requires that the sale be “suitable” as defined by the agent/broker's understanding of the client's net worth, income, and time horizon as they exist at the time of the sale.
According to Barbara Roper, Director of Investor Protection for the Consumer Federation of America, “You can satisfy the suitability standard by recommending the least suitable of the suitable options, as long as it falls within the general suitability test.”
We are committed to the standard of making recommendations under the fiduciary standard of care, with full disclosure, independent of considerations for compensation. It is the highest standard of care, and one that we embrace. We conduct all of our investment-related business under the fiduciary standard of care, even if we are dealing with registered products and insurance, which do not specifically require the higher standard of care.
For more information on compensation, see the Business Model and Compensation page.