Are your investments in your very best interest, or are they simply suitable?
The fiduciary standard is a legal requirement that obliges registered investment advisors to act solely in their clients’ interests. A fiduciary duty is the highest standard of care in equity or law. Interestingly, there are many financial professionals (brokers and insurance salesmen are examples) who are not legally bound by the same requirements. Instead of determining whether or not a certain product or investment is in a client’s best interest, they are bound by a different standard – that of suitability.
For years, the fiduciary standard has been debated. In 2015, President Obama weighed in. Read this article to learn more.