fi•du•ci•ar•y –
A Financial Advisor held to a Fiduciary Standard occupies a position of special trust and confidence when working with a client. As a fiduciary, the Financial Advisor is required to act with undivided loyalty to the client. This includes disclosure of how the Financial Advisor is to be compensated and any corresponding conflicts of interest. Congress is currently considering if they should add a fiduciary requirement for all financial advisors. We're not sure why they have to think about it. As a member of the National Association of Personal Financial Advisors (NAPFA,) we have been doing that for years. In fact we will personally sign the Fiduciary Oath to pledge that commitment to our clients. See the sample below:
The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client. The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of the advisor. The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client's purchase or sale of a financial product. The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client's business. Following the NAPFA Fiduciary Oath means I shall: