Lately, we’ve seen quite a few commercials with actors claiming that their firm should be trusted as they “follow a fiduciary standard.” But what exactly does that mean?
What is a Fiduciary?
A fiduciary is a professional entrusted to manage advisory assets or wealth while putting the client's best interests first at all times. Financial advisors when acting in a fiduciary capacity for their advisory clients must disclose any conflict, or potential conflict, to their clients before and during the advisory engagement. Fiduciaries will also adopt a code of ethics and fully disclose how they are compensated.
Fiduciary Standard vs. Suitability Standard?
Not all “financial advisors” are obligated to act in fiduciary capacity despite the fact that they carry themselves that way in the public eye. The reality is anyone can call themselves a financial advisor with no actual credentials. This is referred to as the Suitability Standard, often comprised of large broker dealer firms and insurance salesman who are paid commissions on their investment products. Menninger & Associates operates under the Fiduciary Standard with advisory clients, acting in the client’s best interest 100% of the time. We are compensated for our advice under a fully disclosed fee only structure, we cannot charge or accept commissions, and will not agree to third party reimbursements.