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https://www.agingcare.com/articles/what-is-a-professional-fiduciary-153522.htm


I am posting this article from our own Forum. Given some questions I am seeing of late I think it is important we all know the difference between a financial INVESTMENT person who calls him or herself a "Fiduciary", and a Professional Fiduciary who might be hired to act as conservator or as POA for an adult without children or trusted friends who are qualified or willing to act in this capacity.


Some Financial Investment folks proudly proclaim themselves as "fiduciaries" when really they are there to invest your money, hopefully for your own profit, but CERTAINLY for their OWN profit. Then there are people who are (at least in California) actually licensed to serve as paid Fiduciaries (about 90.00 and up and hour) to manage life for someone who needs the care of a POA to manage health and financial concerns. There is a world of difference and making the wrong choice is of concern. I went looking for advice online on "google" to see how I could find an article on the difference, and low and behold found this, already posted and published on our own Forum.
I am reposting here just for general information.

Here is an excerpt from a book written by one of my financial sector clients. Below he outlines the fiduciary duties of a financial advisor:

"Fiduciary Intelligence. (Why it’s so smart.) 

Very few investors know the importance of selecting a financial advisor that serves as a pure fiduciary for their financial wellness. The term financial advisor is very broad. Financial advisors come in all shapes and sizes and can have many different titles. There are various types of investment professionals and the products and services they can, or cannot provide, will depend on the license(s) and training they have. Let’s go over what a fiduciary does:  
 
{ A fiduciary holds a legal or ethical relationship of trust with you. }

A fiduciary prudently takes care of your money or assets. They may be a financial advisor, a corporate trust company, or the trust department of a bank. (This book will only cover the fiduciary duties of a financial advisor.) 

{ When a financial advisor has a fiduciary duty to you, they must act in a way that will financially benefit you. }
 
The financial advisor who has a fiduciary duty is called the fiduciary, and to whomever the duty is owed is called the principal or the beneficiary. If the fiduciary breaches their responsibilities to you, they would need to account for their ill-gotten profit and you are entitled to damages.  Financial advisors who are fiduciaries hold a relationship of trust by which they must abide. Fiduciary duty is the ethical obligation to act solely in your best interest. 

Fiduciary commitment eliminates conflict of interest concerns and makes their advice more trustworthy. 

Fiduciaries must:

- put your best interests before their own, seeking the best prices and terms.
- act in good faith and provide all relevant facts to you.
- avoid conflicts of interest and disclose any potential conflicts of interest to you.
- do their best to ensure the advice they provide you is accurate and thorough.
- avoid using your assets to benefit themselves, such as purchasing securities for their own account before buying them for you."

From the book, "Freedom to Soar" by Rick Keast. I hope this helps!
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Thank you, Alva.
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