5 Rules Every Professional Fiduciary Must Follow
There are several rules that every professional fiduciary must follow. Here, the certified financial planners at Fiduciam Wealth Management discuss the top five rules every fiduciary must follow.
Your Clients Best Interest Comes First
Unlike many other professions, a fiduciary has a legal obligation to place the best interest of their client ahead of everything else. A fiduciary owes their client a legal duty of care. This duty ensures that they are doing their absolute best possible on behalf of the beneficiary. A fiduciary may use his or her own expertise or hire experts for their advice on behalf of the beneficiary.
Avoid Conflicts of Interest
A fiduciary must place the best interest of the client over any investment product. It is imperative that fiduciaries maintain loyalty to their clients. A fiduciary is expected to mange assets for the benefit of the other person or organization, rather than for their own profit, and they cannot benefit personally from the management of the beneficiary’s assets.
Know Your Client
It’s nearly impossible to act in someone’s best interest if you don’t know what those interests are. To be an effective fiduciary, you must fundamentally understand where the client wants to take their life and help them to create a plan to get there. When you truly understand your client’s goals, and hold yourself to a high ethical standard, you can be the best fiduciary possible.
Quality and honest communication between a fiduciary and beneficiary is the foundation of a positive relationship. A fiduciary is an adviser. Advisers listen, and then speak with distinct – and sometimes blunt – clarity.
Actions speak louder than words. A fiduciary should be able to execute plans well on behalf of clients for the client’s benefit. Anticipating actions well in advance of a deadline not only reflects well on your work ethic, but also sets up your clients for future success.
Contact the Trustworthy Fiduciaries at Fiduciam Today!
It is the job of an effective fiduciary to perform their job with the best interests of their client at the forefront of their mind. Fiduciam Wealth planning is an independent, fee-only, Registered Investment Adviser (RIA) providing families, individual investors and business owners with the services they need to help them successfully achieve or maintain wealth. Contact one of our Certified Financial Planners for a consultation today.