According to the Cornell University Law Dictionary, “a fiduciary duty is the highest standard of care.” It entails acting always in your best interest, even if it is contrary to our own.
In practical terms, this means that we are legally obligated to only recommend investment products that are the best option for you.
The fiduciary standard is the highest legal standard in the financial industry and is one that we wholeheartedly embrace as it naturally flows from our core values.
In acting in your best interest, a fiduciary has two main duties: the duty of care and the duty of loyalty.
Duty of Care. Under the duty of care, a fiduciary must make informed decisions only after he or she has reviewed the available information. We fulfill this by taking a comprehensive look at your financial life before making recommendations or plans.
The duty of care also means that our obligation to you extends beyond the first or second meeting. As a fiduciary, we continually monitor our client’s investments and financial situation and adhere to best practices of conduct through the duration of our relationship.
Duty of Loyalty. Under the duty of loyalty, a fiduciary cannot put their interests before their clients and must avoid any conflicts of interest that influence how the client is treated.
In practical terms, our investment and other recommendations are made because they benefit you and not us.
Although anyone can legally call themselves a financial advisor and offer financial advice, only fiduciary financial advisors are required – by law – to place your best interest over their own.
Generally speaking, financial advisors who work for brokerages are not fiduciaries but are held to the lesser legal standard of care called the “suitability” standard.
Investment advice offered through IPI Wealth Management, Inc. 226 W. Eldorado St. Decatur, IL 65222. PHONE: 217-425-6340. Clearstone Wealth Management is not affiliated with Investment Planners, Inc. or IPI Wealth Management, Inc.
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