Life is filled with choices and unexpected events that have major financial implications. This is why understanding personal finance and how a financial advisor can help is important. The tangible rewards from excellent advice and careful planning and making good choices can be life-changing. They can mean greater security in retirement and optimism about the future.
The “Investor Bill of Rights” sets out what investors should expect from advisors. Advisors who are competent and objective and know what it means to serve investors best interests and follow Best Practices.* These practices are key to excellent advice.
I expect that my fiduciary advisor
- Meets the highest standards and puts my interest ahead of his/her own at all times.
- Understands my circumstances, needs, goals and risk tolerance.
- Puts our agreement in plain writing that includes an investment policy statement or process that reflects my goals and philosophy.
- Provides communication that is timely, truthful, complete and understandable so I am well informed. Puts important agreements in writing.
- Gives me advice that is objective and unbiased and based on my needs.
- Is educated and credentialed in personal finance and investing, dedicated to professional education and experienced in advising investors like me.
- Reports regularly on my investments’ performance, the fees and expenses I pay and the fees the firm receives as a result of advising on my portfolio. On request, provides written records that explain any recommendations.
- Avoids conflicts of interest. If a conflict is unavoidable, the advisor discloses the conflict, discusses it with me and manages it for my benefit.
- Avoids receiving payments from other parties (like mutual funds). If unavoidable, the payment is either credited to me or managed for my benefit.
- Controls investment expenses so the fees and expenses I pay are reasonable.
See the Best Practices for Financial Advisors at: