What is a Fiduciary?
A fiduciary is an individual or organization that has a legal and ethical obligation to act in the best interests of their clients. Fiduciaries are held to a higher standard of care and must prioritize their clients’ needs over their own.
Fiduciary relationships exist in various professions, including financial advising, law, medicine, and corporate governance. In the financial realm, fiduciaries can include financial advisors, investment managers, trustees, and retirement plan administrators.
Choosing to work with a fiduciary financial advisor can provide clients with peace of mind that their interests are being prioritized. It’s important for clients to understand the differences and select an advisor that best fits their needs and preferences.
How to Determine if Your Financial Advisor is a Fiduciary
Ask directly.
Check their credentials.
Review their Form ADV.
Look for fiduciary language.
Ask them to sign a fiduciary oath.
Fiduciary vs. Non-Fiduciary Advisors
A fiduciary financial advisor is legally and ethically obligated to act in the best interests of their clients. This means they must prioritize their clients’ needs over their own when providing advice and making recommendations. Fiduciary advisors are held to a higher standard of care – they must provide full disclosure of all material facts, avoid conflicts of interest, and manage any conflicts that arise in the best interests of their clients.
In contrast, non-fiduciary financial advisors are only required to provide advice that is “suitable” for their clients, but not necessarily in their best interests. These non-fiduciary advisors may receive commissions or other incentives for selling certain financial products, which can create conflicts of interest.
Choosing a fiduciary advisor can provide clients with peace of mind that their interests are being prioritized. Ultimately, it’s important for clients to understand the differences and select an advisor that best fits their needs and preferences.
CWA’s Fiduciary Commitment
At Conte Wealth Advisors (CWA), our team of financial advisors are proud to serve as fiduciaries. As a registered investment advisor firm, we are legally required to act in the best interests of our clients at all times.
This fiduciary duty is a core part of our advisory approach. It means we are obligated to provide advice and recommendations that prioritize your financial wellbeing over our own. We must fully disclose any potential conflicts of interest, and manage those conflicts to protect your interests.
Our advisors hold the proper licenses and credentials to offer comprehensive wealth management services. This licensing requirement ensures we are held to the highest standard of care and expertise when serving our clients.
When you work with Conte Wealth Advisors, you can have confidence that your financial goals and best interests are our top priority. We are committed to providing objective, transparent advice to help you achieve financial success.