In the realm of investment advice, all it takes is seeing the definition of “fiduciary standard” to understand why it’s so important:
Fiduciary - “a Financial Advisor held to a ‘Fiduciary Standard’ occupies a position of special trust and confidence when working with a client. As a Fiduciary, the financial advisor is required to act with undivided loyalty to the client. This includes disclosure of how a financial advisor is to be compensated and any corresponding conflicts of interest."
Put simply, abiding by the Fiduciary Standard means putting your clients’ interests first. Most investors might read the above definition and think, wasn’t this the rule the entire time? It should be that simple, right? Not necessarily.[+] Read More