Description

Can someone be a fiduciary while also earning commissions for selling financial products? The answer is more complicated than many investors realize.

In Episode 36 of The Decision Dividend, Pat Collins and Marcus Schafer explore the history and meaning of fiduciary duty, the different standards governing financial advice, and the signals investors can use to evaluate an advisor.

You’ll learn:

Why fiduciary duty requires the duty of loyalty and the duty of care.

How investment advisers, broker-dealers, hybrid advisors, and CFP professionals can operate under different standards and forms of oversight.

Why investors should evaluate compensation, registration, credentials, experience, and firm structure together rather than relying on a single label.

Sources

1. Douglas Harper, “Fiduciary,” Online Etymology Dictionary. https://www.etymonline.com/word/fiduciary
2. Irina Gvelesiani, “From the History of the Development of ‘Trust’ and Terminological Units Related to It,” Electronic International Interdisciplinary Conference, 2013. https://www.researchgate.net/publication/286912647_From_the_History_of_the_Development_of_Trust_and_Terminological_Units_Related_to_it
3. U.S. Securities and Exchange Commission, “Commission Interpretation Regarding Standard of Conduct for Investment Advisers,” Release No. IA-5248, 2019. https://www.federalregister.gov/d/2019-12208
4. U.S. Securities and Exchange Commission, “Regulation Best Interest: The Broker-Dealer Standard of Conduct,” Release No. 34-86031, 2019. https://www.sec.gov/rules-regulations/2019/06/s7-07-18
5. CFP Board, “Code of Ethics and Standards of Conduct.” https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct
6. Electronic Code of Federal Regulations, 29 CFR § 2510.3-21, “Definition of Fiduciary.” https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XXV/subchapter-B/part-2510/section-2510.3-21

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Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.